Global Insight quotes Shirley Fu, Tom Wong and Victoria Younghusband on trends in corporate activity in China
In an exploratory article, IBA publication Global Insight assesses what’s shaping corporate activity and the M&A landscape by analysing trends across four key markets: the United States, Asia, the United Kingdom and Germany.
On Asia, it reports that we are still in "still India's decade" and that activity has picked up in the country following a cautious 2024 spent awaiting the outcome of the election.
Elsewhere, levels of corporate activity in Japan have "increased and remained high over the last few years, and that trend is set to continue". Global Insight also reports that private equity companies are active in the Japanese market and that "the Japanese economy is very steady, which is attractive to investors".
The piece then explores trends in China. It reports: "Despite facing geopolitical challenges, China continues to see both inbound and outbound investment and M&A activity. Recently, growth has slowed as deal sizes have reduced, but levels of activity are gradually increasing."
Shirley Fu, Partner in our Corporate and Commercial teams based in Hong Kong, provides her insights on China specifically. She explains that despite [some] challenges, there are still many businesses continuing to invest into China. Shirley goes on to argue that when it comes to investing into China, it’s "all about managing risk" and that companies feeling as though they can comfortably manage the relevant risk through taking proper legal advice should continue to consider doing business in the country.
Global Insight goes on to report that China "plans to further refine the negative list to expand market access to foreign investors into, for example, science and technology, and to allow wider participation by non-Chinese financial institutions in the banking and insurance industry." Tom Wong, Senior Legal Manager also in our Corporate and Commercial teams based in Hong Kong, adds that "The Chinese government has become more welcoming of foreign investment than ever before".
The piece also touches on Hong Kong's capital markets, noting that "there are signs that the Hong Kong equity capital market is recovering after a significant drop in new listings since 2021" and that "the number of listing applications has increased, partly because the authorities in mainland China have encouraged Chinese companies to make an initial public offering (IPO) in Hong Kong". Victoria Younghusband, Partner in our Corporate team based in London, comments on this, arguing: "If this trend continues, Hong Kong may regain its place as one of the world’s top three IPO markets in 2025".
Read the full article in Global Insight here.
