China International M&A way over $100 billion a year

WSJ:

China’s total outbound mergers-and-acquisitions investing over the next 10 years could total $1.5 trillion, a recent report by international law firm Linklaters predicted. That is more than double the total from the past decade, according to Dealogic data, but is roughly flat when compared with current levels.

The first half of 2017 saw a total of $72.6 billion of outbound M&A from China, with Europe taking the largest share. That is far below Chinese outbound M&A of $129.3 billion in the first half of 2016, a record for any half.

Among the forces driving the sober forecasts and sharp decrease are the Chinese government’s crackdown on what it has described as “irrational” overseas deals—such as for expensive real estate—that don’t relate to investors’ core businesses.

China is limiting non-productive M&A according to new guidelines: “Beijing wants companies to continue buying overseas technology and supporting initiatives such as President Xi Jinping’s One Belt, One Road’ project, a massive global infrastructure investment plan to establish China as the dominant world-trading power.”

What a crazy country. Why can’t they calm down and be sensible like CNN and ESPN? Did we say CNN? And what about this guy? He voted the party line after all.

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