HORIZONS | BDO'S GLOBAL VIEWOF MID-MARKET DEAL ACTIVITY 45
CHINA HEAT CHART BY SECTOR
Industrials & Chemicals
602 31% 295 15% 232 12%
TMT
Business Services
Consumer
177
9% 8%
However, amid the growing regulatory uncertainty in China as illustrated in the education and online gaming sectors, investing in China’s companies will need increased assessments on risk appetite to weather any unexpected developments from regulatory changes. TOP DEALS The largest mid-market deal in Q3 2021 took place in the Industrials & Chemicals sector. The top three major mid-market deals were as follows: • Global Power Synergy Public Company Limited acquired a 25% stake of Xidao Wind Power Co Ltd and a 25% stake of Changfang Wind Power Co Ltd from Copenhagen Infrastructure Partners K/S at a consideration of USD 500m – announced in July 2021 • Temasek Holdings Pte. Ltd. and 10 other companies jointly acquired Shenzhen Mexixi Restaurant Management Co Ltd. at a consideration of USD 500m – announced in July 2021 • Shenzhen New Nanshan Holding (Group) Co., Ltd acquired a 51.02% stake of Shenzhen Haichengmian Industrial Development Co Ltd at a consideration of USD 476m – announced in July 2021. LOOKING AHEAD The latest BDO Global Heat Chart shows that Greater China is predicted to be the second most active region, with a total of 1,922 deals planned or in progress with 602 (31%) related to Industrials & Chemicals, 295 (15%) in the TMT sector and 232 (12%) in Business Services.
Pharma, Medical & Biotech 162
Energy, Mining & Utilities
158 8% 118 6% 113 6%
Financial Services
Real Estate
Leisure TOTAL
65
3%
1922
CHINA MID-MARKET VOLUMES BY SECTOR
2020
2021
238
199
180
119
152
139
39
30
553
385
111
77
201
168
112
67
217
153
Technology & Media
Financial Services
Energy, Mining & Utilities
Pharma, Medical & Biotech Real Estate
Consumer
Business Services
Leisure
Industrials & Chemicals
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