China's outward M&As may shrink in 2017, says sector expert

Increasing protectionism in a number of countries including the United States, tighter local supervision, and fluctuating exchange rates are factors that could come into play and become a drag on the pace and size of international Chinese corporate takeovers in 2017, Shanghai-based M&A information provider Morning Whistle has found.

After reaching a record last year, China's outbound merger and acquisition activities may shrink 20 to 30 percent by transaction volumes in 2017, according to Morning Whistle.

"Foreign regulators are likely to probe deals more frequently amid rising protectionist and xenophobic sentiment," said the advisory firm's vice-president Luo Xiaojun. "At home, closer scrutiny of big-ticket purchases is also decelerating the process."