M&A value in China hits record in H1

The value of mergers and acquisitions in China hit a record in the first half of this year, and PricewaterhouseCoopers believe that reform of state-owned enterprises and overseas expansion by private firms will ensure the M&A momentum can be sustained.

The M&A deals, including domestic, outbound and inbound, rose 19 percent from the same period a year ago to $183 billion, while the number of deals was flat at 2,648, PwC said in a report yesterday.

Thirty M&A deals exceeded $1 billion, the report said, citing data from Thomson Reuters and China Venture.

"M&A activity in the first half of the year was notably strong thanks to growing competition for assets prompted by industry consolidation, companies searching for inorganic growth, and SOE reforms," said Roger Liu, PwC China deals PE leader.

Private firms, especially in the real estate and technology sectors, lifted the value of outbound M&As by 50 percent from the second half of last year.

Meanwhile, the value of inbound M&As jumped 52 percent as multinationals increased their presence in China.

PwC said that M&As will continue to grow in the next six to 12 months due to SOE reforms that encourage private investment, outbound expansion by private companies and as private equity looks to withdraw from their investments.

The technological, financial services and real estate sectors are set to lead M&A activities.