China's M&A deal volume slumps 47% in Jul-Nov

Published: 18 Dec 2008 02:34:01 PST

Dec. 18, 2008 (China Knowledge) - China's merger and acquisition (M&A) deal volume slumped 47% year on year during the past five months due to domestic issues and the prolonged global economic turmoil, the Standard reported, citing a report by PricewaterhouseCoopers (PwC).

M&A deals shrank to 543 during the period from 920 cases in the first half of this year, largely affected by factors including interest rate hikes, new labor laws, rising commodity prices and stock market decline, the report said.

PwC expected M&A activities in China to revive in the second half of next year, as strategic buyers are still staying on the sidelines and waiting for market conditions to improve.

The accounting firm remains optimistic towards China-related private equity (PE) funds, and noted PE investors raised US$14.4 billion this year, almost doubling the US$7.3 billion of last year.

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