With fewer mega deals pushing through due to central government curbs, China's M&A activity fell in the first six months of 2017.
Super acquisitive Chinese conglomerates have recently had their collective wings clipped, this week for example Wang Jianlin's Dalian Wanda Group backed away from another substantial overseas deal.
Total M&A activity in China fell to $283 billion in the first six months of 2017, down from $355 billion in the second half of 2016.
Down But Not Out
The total value of deals was down across the three main sub-sectors (strategic, financial and outbound), according to PwC’s M&A Mid-Year Review and Outlook 2017.
But while outbound deals fell 13 percent in value terms, the number of transactions actually increased by 8 percent.
Lack of Mega Deals
«The absence of high profile mega-deals has clearly affected the overall value of M&A activity,» says David Brown, Transaction Services Leader for PwC China and Hong Kong.
«But the fact that the volume of outbound transactions is now at a record high indicates that deals with a sound strategic rationale are still encouraged.» Brown added.
