Data show record-breaking quarter for outbound M&AS

Chinese companies spent a record amount on overseas M&As in the first quarter of this year, data released by Morning Whistle Group show.

The Shanghai-based company, which tracks merger and acquisitions, says 206 purchases were recorded from January to March, up 77.59 percent year-on-year.

Of the 135 that were disclosed to the public, the total transaction amount was $73.19 billion, a year-on-year increase of 86.08 percent.

"Chinese companies are becoming big buyers globally," says Wang Yunfan, chief executive of Morning Whistle. "Even though the market has expressed some doubt about such acquisitions, I think this is the path Chinese companies must take to seek sustained growth."

In developed markets such as Europe, the United States or Japan, the overseas assets allocation rate remains about 40 percent, the company's data show. For China, it is just 8 percent.

Morning Whistle says technology, media and telecommunications, as well as agriculture and food, and energy and minerals were the three biggest sectors in which Chinese companies invested overseas last year.

In terms of destination, Western Europe attracted the most money, with 102 acquisitions. Those released to the public accounted for 46.58 percent of all investment abroad in 2015.

A survey by Morning Whistle in the fourth quarter last year showed Germany was the most popular investment destination among active buyers, with 127 of those surveyed showing an interest in the nation's companies.

shijing@chinadaily.com.cn

(China Daily Africa Weekly 04/29/2016 page25)