China M&A 2024 review and outlook

According to China M&A 2024 review and outlook report, the transaction value of China's M&A market in 2024 declined by 16% compared to 2023, dropping to US$277 billion, marking a recent low. However, the total transaction volume in 2024 increased by 24% compared to 2023, due to a significant rebound in venture capital (VC) activity.

In 2024, there were only 39 ‘mega-deals’ (transactions exceeding US$1 billion), the lowest in nearly a decade, with 18 involving state-owned enterprises. The industrial sector (nine large deals), high technology sector (eight large deals), and energy & power sector (six large deals) were particularly favoured by large capital inflows.

Looking ahead to China's M&A market in 2025, while challenges remain, such as the narrowing investment channels for foreign capital like USD funds within China and low valuation levels (expected to improve), many positive factors are also expected to have a favourable impact on the M&A market. These include some positive signs of economic improvement in China, pent-up M&A demand, a large inventory of private equity projects awaiting sale, and the potential for continued global interest rate reductions.