FDI: Chinese Investors Slow M&A Overseas
Outbound cross-border deal value in 2022 fell to a 17-year low
Mergers and acquisitions (M&A) of foreign companies by Chinese investors last year plummeted to their lowest level in more than a decade, as tighter financing conditions and heightened scrutiny have weighed on dealmaking.
Cross-border deals worth $18.3bn were agreed by Chinese investors in 2022, according to data provider Refinitiv — around half that of the $38.9bn recorded in the previous year and the lowest level since 2006. A total of 380 cross-border M&A deals were made by Chinese investors last year, marking the lowest annual total since 2012.
While overall global M&A in 2022 fell by about 37.5% compared to 2021, the decline in Chinese overseas dealmaking has been far greater.