Mergers and acquisitions involving Chinese companies slowed in the second quarter as China's buying spree in overseas markets lost momentum, industry data showed.
The value of China-related M&A deals totaled $146.4 billion in the April-June quarter, a 36.2 percent tumble from the first three months and down 34.1 percent year on year, according to data released by Thomson Reuters yesterday.
That offset a blistering first quarter when growth surged over 30 percent, and brought the total deal value in the first half of the year to $375.8 billion, up 2.8 percent from the same period last year.
Chinese companies spent $111.6 billion on outbound acquisitions in total value in the first six months of this year, surpassing $111.5 billion for the whole 2015, data showed.
Outbound deals hit an all-time high during the first quarter, but the momentum seemed to be short-lived as the outbound deal value plunged 64.3 percent in the second quarter.
Industry insiders attributed the robust growth in the first quarter to a carryover effect from 2015 when global economic restructuring and expectations about US dollar appreciation encouraged cross-border investments.
But overseas purchases by Chinese companies are facing increasing headwinds.
Luo Xiaojun, vice president of Morning Whistle Group, a cross-border M&A information provider, told Shanghai Daily that "they have been deterred by rising valuation of overseas assets and challenges in fundraising for acquisition."
He added that "the rise of Chinese buyers is triggering increasing anti-monopoly probes and concern over national security."
Chinese home appliances giant Midea Group's bid for German robot maker Kuka sparked political resistance amid fears that Germany's lead in the cutting-edge technology would be passed to Midea if it bought Kuka.
The materials sector took up 46.7 percent of China's outbound acquisitions in the first half with a value of US$52.1 billion, fattened by the US$46.6 billion ChemChina-Syngenta deal, the data showed.
