The Covid-19 pandemic and an unsettled international political environment poured cold water on Chinese outbound investment as first-half overseas merger and acquisition deals fell to the lowest in 10 years, reported Caixin.
In the first half of 2020, outbound Chinese M&A activity declined 17% to 248 announced deals, though the rate of decline in the second quarter eased from the first quarter. Transaction values dropped 40% to $14.6 billion, the lowest in a decade, according to a report Thursday by global advisory firm EY.
China’s overall outward direct investment amounted to $54.9 billion, down 4.4% year-on-year. Nonfinancial investment was $51.5 billion, down 4.3%, which was mainly invested in leasing and business services, manufacturing, wholesale, and retail and mining sectors, the report found.
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