EY: China's overseas M&A slumps in 2017
- By Guo Xiaohong
0 Comment(s)
Print
E-mail China.org.cn, April 12, 2018
The overseas investment by Chinese companies fell 32 percent to US$144.8 billion in 2017 on a year-on-year basis while the number of deals declined 12 percent to 620, according to a report released by EY, a global leader in assurance, tax, transaction and advisory services, in Beijing on April 11.
![EY releases its new report, China Go Abroad: Belt and Road - Exploring a Blueprint for Steady Growth in Overseas Investment, in Beijing on April 11, 2018. [photo courtesy of EY]](http://images.china.cn/site1007/2018-04/12/0cb6df5e-9c0d-4ee5-9249-984f61b9196f.jpg "EY releases its new report, China Go Abroad: Belt and Road - Exploring a Blueprint for Steady Growth in Overseas Investment, in Beijing on April 11, 2018. [photo courtesy of EY]")
Tightened cross-border capital control and increased global investment uncertainties attributed to the decline, said the report China Go Abroad: Belt and Road - Exploring a Blueprint for Steady Growth in Overseas Investment.
China's investment dropped in Europe and America, yet hit a new high in Asia and Oceania, especially in ASEAN countries, as the Belt and Road Initiative brings growth momentum.
In 2017, deal value of Chinese M&As in ASEAN surged to US$34.1 billion, 268 percent up since 2016 and representing a quarter of total value of disclosed Chinese M&As.
ASEAN is a lucrative destination for investors thanks to its young population, large labor force, abundant natural resources and huge opportunities to invest in its infrastructure sector, said Andrew Choy, EY's Greater China International Tax Services Leader.
"Despite a significant decline in Chinese overseas M&As, deal value in automotive and transportation, power and utilities, oil and gas and life sciences posted a YoY increase," said Alex Zhu, EY's China North Transaction Advisory Services Leader. "That shows even though the scale of China outbound investment decreased in 2017, investments in real economy still keep a steady growth."
In addition, the investment structure continued to optimize in the midst of the tightened capital control, the rise of international trade protectionism and the complex global investment environment, said Zhu.
EY also predicted that the improved investment policy and environment in 2018 will drive China's overseas investment to grow steadily and healthily and to focus on the real economy as infrastructure and life sciences sectors are expected to keep the momentum.
Go to Forum >>0 Comment(s)