Another ‘robust’ year ahead for mergers and acquisitions by Chinese businesses, says EY
99pc of Chinese respondents to company’s ‘Capital Confidence Barometer’ say they see an improving or stable economy at home and abroad
Chinese mergers and acquisitions activity is expected to have another “robust” year in 2018, according to a report released by global accounting firm EY on Thursday. Trade tensions have failed to hold back companies from pursuing their “go global” ambitions and M&A activity by private equity firms.
Chinese companies are more optimistic about economic and market conditions, and expect the M&A market to remain upbeat, EY said in its latest “Capital Confidence Barometer”, a global survey of more than 2,500 senior executives in 43 countries conducted twice a year since 2009.
For the first time, 99 per cent of Chinese respondents said they saw an improving or stable economy, at home and abroad.
“We do not see rising protectionist action by governments as having a major impact on M&A activity, as executives understand that dealing in a globalised market is necessary,” said Bernard Poon, managing partner of transaction advisory services at EY in Hong Kong and Macau.
The survey was conducted in March and April, at a time when there were signs of a full-blown trade war between China and the United States, the world’s two largest economies.
