MoneyTree™ China renewable and cleantech investment report

Q2 2016

According to PwC's MoneyTree™ China Renewable and Cleantech Investment Report (Q2 2016), China's renewable energy and cleantech industry saw 27 M&A deals in Q2 2016. The domestic deals together with 4 overseas M&A deals marked a turning point from the previous three consecutive quarters, with Q2 experiencing a 28.6% increase in the number of M&A deals made. However, the disclosure of M&A deals in the industry amounted to a total of USD 700 million, which represented a slight drop from Q1.

In Q2 2016, a total of 35 PE/VC investments were made, with the amount of investments totalling USD 396 million. These included 20 deals within the environmental protection sector, 13 deals in the new energy sector, and 2 deals in the new material sector. Also of note, 5 companies listed on the main board and 14 companies financed via the NEEQ secured access to financing. The investment rounds which give target placements predominantly for relatively mature companies listed on the NEEQ and main board, represented 54.3% of the total amount of investment deals. Based on the investment amount, the proportion of deals in the PIPE round rose to make up 64.4% of the total.