China’s economy rebounded with an 8.1% increase in GDP for 2021, notching increases in fixed asset investment (4.9%), value-added industrial output (9.6%) and retail sales (12.5%). However, fourth quarter GDP growth slowed to 4.0% year-over-year from 4.9% the previous quarter, as the economy still faces uncertainty related to the pandemic and a complicated external environment.1

Recent increased scrutiny of offshore-listed Chinese companies has continued to weigh on the stock prices of many Chinese firms traded on U.S. exchanges.

U.S. IPO activity for Chinese companies continued at a strong pace in the first half of 2021; however, new listings in the U.S. slowed during the second half of the year amid stricter policies and regulations for Chinese companies pursuing offshore IPOs.2

2021 saw an uptick in going-private transaction activity for U.S.-listed companies based in China, with 10 privatizations completed during the year and nine potential transactions announced that have yet to close. U.S.-listed Chinese companies with pending going-private proposals represented approximately USD 8.6 billion in total market capitalization as of December 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 December 31, 2021

China Transactions Insights – Winter 2022 /en/insights/publications/m-and-a/china-transactions-insights-winter-2022 /-/media/kroll/images/publications/featured-images/china-transactions-insights-winter-2022-300-200.jpg 2022-02-09T00:00:00.0000000 publication {1F8452CE-BB02-4541-A705-86D25933687E}{A60877A4-2248-456C-B8DE-728B8C4124FC}{170088C8-830B-4C38-BC1D-E375A677EEDC}{796A58E9-D284-46A9-96EC-56B0D27685A6}{0840D7ED-B8E4-48DD-8F31-7345340BF1D9} {6B18A490-2227-426A-A1D0-3836822E90EB}

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