China’s outbound direct investment will enter an "ice age" in 2017, due to the country’s continued tight control over capital outflows. But in the long term, more Chinese companies will seek acquisitions overseas and the sector still has significant room for growth, says a report issued by Sino-Europe private equity firm A Capital.
China's announced outbound M&A deals totaled US$23.8 billion during the first three months of 2017, a drop of 75% from US$95.1 billion recorded during the same period a year ago. In 2016, outbound deals worth over US$75 billion were reportedly aborted for reasons related to newly implemented capital control measures, compared to just US$10 billion in 2015. More than 30 investments in European and American companies were aborted last year due to capital controls.
Despite the new restriction, 2016 was the ...
This news article comes via , who is the copyright owner of this information and news. FintekAsia.com has licensed the rights to this article and any republication or re-distribution in whole or in part of this content is strictly prohibited without the express consent of China Money Network