China's economic recovery is strong in 2021, but its economic development still faces the triple pressure of shrinking demand, supply shock and weakening expectations. Chinese enterprises have a great impetus to adjust their strategies and businesses and improve operation management. At the same time, with the further improvement of the multi-level capital market system and the optimization of the fund-raising and exit environment, Opportunities for Chinese enterprises to reconfigure their business through mergers and acquisitions and asset restructuring have increased simultaneously. In this context, Qingke Research Center under Qingke venture (1945. HK) invites you to review the data of China's M & a market in 2021 and overview the new market trends.
I. The total number of mergers and acquisitions increased steadily and the transaction amount decreased
In 2021, the impact of covid-19 gradually subsided. Although there was still a rebound, the economic recovery momentum was strong, and the GDP increased by 8.1% year-on-year. Driven by the economic recovery, China's M & a market has become more active. A total of 2172 M & A events occurred in 2021, with a year-on-year increase of 14.7%. Due to the adjustment of regulatory policies since the second half of 2020, the market was more cautious due to uncertainty, which showed that the annual M & a scale fell by 23.1% year-on-year to 930.957 billion yuan. The changes in each quarter of the year were relatively stable, with 486, 513, 539 and 634 cases in the four quarters, with transaction amounts of 241.832 billion yuan, 160.886 billion yuan, 219.683 billion yuan and 308.556 billion yuan respectively.
The amount of M & A transactions shows differentiation. Small mergers and acquisitions of less than 500 million yuan are the mainstream of the market, accounting for nearly 70% of the total number of cases, but they make less contribution to the amount and scale of mergers and acquisitions; The number of M & A cases of more than 5 billion yuan accounts for less than 1.5%, but the transaction scale accounts for more than 40%, including the industry restructuring led by state-owned enterprises, the holding M & A implemented by financial institutions and the parallel integration promoted by industry-leading enterprises. On the whole, as China enters the stage of high-quality development, the internal integration and cross industry cooperation and exchange of various industries will become the norm. As a means of enterprise extension development, the importance of M & A is further highlighted; At the same time, the global monetary easing trend continues, superimposed on China's capital market reform, and more abundant liquidity provides sufficient "ammunition" for enterprises to implement M & A.
II. Cross border transactions pick up and China's transaction scale shrinks
In 2021, the number of domestic M & A events increased, but the total scale decreased, and the recovery of cross-border M & A was obvious. The number of domestic M & A transactions reached 2066 (+ 13.7%) and the transaction amount was 812.051 billion yuan (- 29.0%). In contrast, there were 106 cross-border M & A transactions (+ 39.5%), with a total transaction amount of 118.906 billion yuan (+ 74.9%). On the one hand, the warming of cross-border M & A benefits from the relaxation of navigation restrictions due to the easing of the epidemic in various countries during the year, which not only facilitates the flow of personnel, but also facilitates the implementation of overseas M & A; On the other hand, as the first country to resume economic operation under the influence of the global epidemic, China has revealed its economic resilience, still has great attraction to foreign capital, and foreign M & A transactions have warmed up.
