Outbound M&A may decline this year

China's outbound mergers and acquisitions are expected to track the level in 2016 or even see a small decline in both the number and value of deals this year, due to tightened foreign exchange regulations and an uncertain international situation, said a report by PwC.

The approval procedures for outbound M&A are likely to become longer and more stringent, and tightened foreign exchange regulations will also lead to a decline in the volume of transactions, George Lu, PwC China transaction services partner, said at a news conference on Thursday.

The government has tightened screening of overseas investment projects amid concerns about acquisition risks and capital outflows. Special attention is being paid to companies making large-scale investment in fields outside their main business, as well as companies investing in overseas projects bigger than the parent company itself, said the Ministry of Commerce last month.