China has stepped into the second stage of recovery from the COVID-19 pandemic as businesses and people returned to work, demonstrated by a 12.7% increase in GDP for H1 2021. The economy also recorded increases in industrial output (15.9%), retail sales (23.0%), foreign trade (27.1%) and property investment (15.0%) in H1 2021.1

New policies and regulatory actions increasing scrutiny on offshore-listed Chinese companies have created uncertainty and weighed on the stock prices of many Chinese firms traded on U.S. exchanges.

Capital markets activity for Chinese companies has picked up since mid-2020 as markets rebounded from the initial impact of the pandemic. While IPO activity for Chinese companies in the U.S. and Hong Kong has been strong through August, uncertainty remains due to the potential for stricter policies and regulations for offshore listings.2

Going-private transaction deal value for U.S.-listed companies based in China could see an uptick in the months ahead, as companies with pending going-private proposals represented over USD 12 billion in total market capitalization as of August 31, 2021.2


Sources:
1 China National Bureau of Statistics and China Ministry of Commerce
2 SEC filings, company press releases and S&P Global Market Intelligence as of August 31, 2021

China Transactions Insights – Fall 2021 /en/insights/publications/m-and-a/china-transactions-insights-fall-2021 /-/media/assets/images/publications/featured-images/2020/china-transactions-insights-spring-2020-300-200.jpg 2021-09-17T00:00:00.0000000 publication {22071366-6F45-4C04-8261-CDFA24749510}{CC4AA7F7-C91B-4C23-A8A9-F85252244AAE}{A60877A4-2248-456C-B8DE-728B8C4124FC}{170088C8-830B-4C38-BC1D-E375A677EEDC}{612AFC91-99B8-46FE-AEAF-8C0F5DE0126A}{E2BFF9A8-DC11-4262-ADBB-D1B589EEAD42} {6B18A490-2227-426A-A1D0-3836822E90EB}

Stay Ahead with Kroll

M&A Advisory

Kroll Corporate Finance supports companies and their advisors through every stage of M&A.

Fairness Opinions

#1 ranked provider of fairness opinions for boards of directors and special committees.

Transaction Advisory Services

Kroll’s Transaction Advisory Services is unencumbered by audit independence concerns and offers seamless analytical service throughout the deal continuum.

Private Capital Markets – Debt Advisory

Kroll has extensive experience raising capital for middle-market companies to support a wide range of transactions.

Financial Sponsors Group

Dedicated coverage and access to M&A deal-flow for financial sponsors.

SPAC Advisory Services

Focused expertise for SPAC transactions.