According to EY, during the first half of 2023, China’s overall outward direct investment (ODI) grew by 9.6% year-on-year (YOY), reaching USD 75.4 billion.
However, the same vitality was not reflected in the overseas mergers and acquisitions (M&A), where the announced deal value was USD 11.7 billion, the lowest for the same period in nearly a decade, with a YOY decline of 14%.
This sluggish activity towards international markets seems destined to experience a trend reversal. A series of events, such as the third Belt and Road Forum for International Cooperation, the inaugural China International Supply Chain Expo or the release of the Chinese government’s Opinions on Promoting the Development and Growth of the Private Economy have provided and will provide further platforms for international cooperation, development for Chinese companies and expansion overseas, especially for POEs.
In terms of foreign direct investment (FDI), in 2023 China underwent a deceleration with a FDI of 9.8% YOY in 7M23 from 8.5% YOY in 1H23 after reaching a record USD 189 billion in 2022, according to Fitch Ratings. In spite of that, during Q1 2023, the country still was one of the top three recipients of FDI inflows worldwide, with USD 21 billion, behind the United States (USD 109 billion) and Brazil (USD 21 billion), as reported by OECD.
All that said, what can we expect from the Chinese investment market for the ending of 2023 and, especially, for 2024 and beyond?
The M&A Community, a global network of professionals dedicated to providing reliable intelligence, expert analysis, and networking opportunities, is glad to invite you to M&A Community networking cocktail: Beijing, 2023.
The event, in collaboration with iDeals and Jingtian & Gongcheng, will bring together professionals and experts from the M&A, PE and VC sectors to interpret the current status and the evolution of the multifaceted Chinese investment market.
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