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The latest news and analysis on M&A, IPOs, private equity, startup investing and the dealmakers behind it all, for subscribers only.
The latest news and analysis on M&A, IPOs, private equity, startup investing and the dealmakers behind it all, for subscribers only.
The latest news and analysis on M&A, IPOs, private equity, startup investing and the dealmakers behind it all, for subscribers only.
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Hi, it's Manuel Baigorri in Hong Kong, where I've been speaking with some experts on the significant pickup in outbound M&A investment from Greater China. Also today, Hong Kong firms are on the hunt for more bankers to handle an IPO surge.
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Shopping spree
With China gearing up for the Lunar New Year holiday and the Year of the Horse, the country's companies have been galloping overseas in search of investment opportunities -- the volume of outbound M&A from Greater China neared $12 billion in January. That's the most for the month since 2017.
Chinese firms have been snapping up big names such as sports brand Puma and miner Allied Gold, adding to momentum after a prolonged lull that began in the mid to late 2010s, when China capped outbound investment to rein in exuberant spending.
"Many new situations are being evaluated at the moment and we expect more significant deals to be announced in 2026," said Richard Griffiths, head of M&A in Asia Pacific for BNP Paribas.
Reasons for the shift include heightened competition and fewer opportunities at home, as well as renewed confidence and financial strength as local brands grow and Beijing gives its blessing to pursue strategic assets. Potential obstacles such as trade barriers and national security concerns still need to be negotiated of course.
"We expect to see more Chinese companies buying assets overseas in markets with lower regulatory hurdles and industries that are less sensitive, including consumer and retail," said Nancy Zheng, a partner at Bain in Shanghai. Other countries in Asia, Canada, some European markets and Latin America have welcomed Chinese buyers, she said.
On the consumer and retail side, Luckin Coffee, which has leapfrogged Starbucks at home, is considering acquisitions including Nestle's Blue Bottle Coffee to elevate its international profile and expand in premium coffee. HSG is among bidders for Leica Camera, while it also acquired Italy's Golden Goose, as well as a majority stake in audio equipment maker Marshall. And FountainVest bought a stake in Eurogroup Laminations.
The appetite for overseas expansion reaches into more sensitive areas too. That can cause complications, such as with Hong Kong tycoon Li Ka-shing's attempt to sell CK Hutchison ports in the Panama Canal and elsewhere. A sticking point is the role China Cosco Shipping might play.
"The China market is highly competitive, driving innovation and cost competitiveness which is positioning China companies well to move overseas," Griffiths said. "Europe is of particular interest."
A strong stock market is giving corporate boards a confidence lift. Hong Kong's Hang Seng Index rallied 28% in 2025 and 18% in 2024, and has pushed on in the 2026, hitting a four-and-half-year high in January. The CSI 300 Index in mainland China has climbed 20% over the past 12 months.
"Private companies are often sector leaders in the China market whose competitive edge has been honed and they have reached the scale and developed the capabilities they need to build their businesses in global markets," said Matthew Phillips, China financial services industry leader at PwC. "Some cases have outgrown their home market."
Another area getting investors' pulses racing is the fast-growing world of data centers and related infrastructure, while elsewhere in tech, Tencent has ramped up overseas M&A in recent years.
"We're operating in a constructive M&A environment, and often the highly dynamic global backdrop can be a catalyst for cross-border activity," said Richard Wong, head of APAC M&A at Morgan Stanley. "Boards and management teams are being proactive about advancing strategic priorities, and those ingredients together are supporting increased deal flow."