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Chinese enterprises have shown less interest in overseas mergers and acquisitions, due to the introduction of a series of regulatory policies and guidelines, as well as the impact of overseas M&A reviews and global economic uncertainties, said Wu Ke, a partner in PwC’s M&A department, Caixin reported.

The number of overseas M&As conducted by Chinese enterprises reached 572 for the first three quarters of 2017, a decrease of 14.8% from a year earlier. Meanwhile, the transaction amount dropped 38.9%, to US$97.7 billion yuan.

Major overseas M&As in terms of high transaction amounts are in energy, electricity and logistic industries. There were 21 large deals exceeding US$1 billion during the first ninth months.

The report states that overcapacity in China has led to the imbalance between supply and demand, driving state-owned enterprises in the resource sectors to upgrade and to export that overcapacity via M&As.