Last year saw record levels of activity for China M&A, as economic transformation drove domestic strategic M&A. PE and Outbound M&A activity also grew strongly: overall deal volume was up 37% and values rose 84% to reach US$734 billion. There were 114 deals worth over US$1 billion - a new record.
Technology and Financial Services were particularly hot sectors in 2015. This was mainly due to higher growth expectations for the tech sector, as well as some industry consolidation. The significant pace of development and capital raising for fintech and payments business in China also contributed.
The Outlook for 2016 also predicts continued high levels of activity in Financial Services. Domestic banks will maintain their expansion to support China's overseas infrastructure (including One Belt One Road) and the increasingly global activities of their domestic customers. Insurers and fintech companies will look to acquire new capabilities and brands, while domestic payment companies will step up international expansion to capture business arising from inbound and outbound cashflows.
Our Transaction Services Leader David Brown reviews the overall trends for deal activity in 2015 and shares his insights and forecasts for the M&A market in 2016. He will also highlight the trends and challenges facing PE funds in China.