Investment & Economy PWC Venture capital

Review and Prospect of Chinese enterprise and industry M & a market in 2021 From PWC

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The following is the Review and Prospect of Chinese enterprise and industry M & a market in 2021 From PWC recommended by recordtrend.com. And this article belongs to the classification: Venture capital, Investment & Economy, PWC.

According to the report “review and Prospect of Chinese enterprise M & a market in 2021”, the number of domestic M & A transactions in 2021 reached a record high of 12790, an increase of 21% over 2020. The transaction amount decreased by 19% from the highest level in 2020 to US $637.4 billion, of which the transaction amount of private equity fund exceeded half of the total transaction amount for the first time.

In terms of transaction volume and transaction volume, China accounts for about 20% and 13% of the global M & a market respectively, and plays an increasingly important role in the global market. China adheres to the concept of opening to the outside world at a high level and is committed to providing opportunities for common development, which has won more and more recognition in the world. According to the Shanghai AmCham 2021 China business environment survey jointly released by PricewaterhouseCoopers and AmCham, up to 93% of US funded enterprises in China are expected to increase (60%) or maintain (33%) their investment in China. In addition, the Research Report on the joint development of 91% of the enterprises in Japan and PWC (46%) will be released in 2023. Foreign enterprises in China are generally optimistic about China’s economic development and market. In the future, more overseas direct investment may enter China as a way to replace M & A transactions.

Thanks to the themes of “double cycle”, “industrial upgrading”, “digital economy and green development” and the general attention to the consumer economy in China, the number of M & A transactions in China hit a record high in 2021, and these hot spots will continue to promote M & A transactions in the future. At the same time, various economic imbalances caused by epidemic changes and geopolitical trends will stimulate the growth of domestic M & A transactions, provide opportunities for enterprise restructuring and strategic changes, and lead more M & A transactions.

In 2021, there were 97 super large-scale M & A transactions (more than US $1 billion each), many of which were consistent with key domestic economic themes, such as industrial upgrading (23 industrial products transactions, valued at US $56 billion), double circulation (17 consumer goods transactions, valued at US $31 billion) and low-carbon environmental protection (9 power energy transactions, valued at US $26 billion). The number of super large transactions led by private equity funds continued to remain at a high level of more than 40 on the basis of the sharp increase in 2020.

M & A transactions of Chinese enterprises may continue to maintain a high level in 2022, mainly due to the continuous transformation of the domestic economy and the historical highest level of funds to be invested by financial investors. It is estimated that the number of domestic M & A transactions in 2022 will be roughly the same as that in 2021, or slightly lower than that in 2021. The huge demand of enterprises for equity funds will continue to exist. At the same time, the private equity fund industry also has sufficient funds to be invested. The investment activities of private equity funds in 2022 are expected to be equal to or slightly lower than the high level in 2021.

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