42013526 - Horizons - Q4_v04c

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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