(Yicai Global) March 31 -- Chinese investors have become less welcome abroad compared with last year, and China's overseas mergers and acquisitions (M&As) also declined sharply in this year's first quarter.
The total amount of overseas M&A transactions that China announced in this year's first quarter hit USD23.8 billion, a record low since 2014, representing a sharp drop from USD95.1 billion in the same period last year, the UK Financial Times reported yesterday, quoting Thomson Reuters data.
In just 12 months, Chinese companies have become less welcome in the international M&A market, a sharp contrast to their previous position as the most high-profile and welcome bidders, observers from the banking and legal sectors noted. Chinese investors are now asked to provide assurances that they can raise enough cash to make acquisitions.
As last year was a banner year for China's M&A transactions, the decline in cross-border transactions in the first quarter of this year is even more marked. Chinese companies engaged in cross-border M&A transactions worth USD222 billion last year. The deals recently announced are not comparable in scope to the large transactions of the previous year.