Chinese entrepreneurs are optimistic about global economic growth, and nearly 90% of respondents expect the mergers and acquisitions (M&A) environment to improve, according to a survey conducted by Ernst & Young, The Paper reported.
Among Chinese respondents, 75% believe that the global economy will show a growth trend in the future, 34% said they will actively seek acquisition opportunities in the short term and 87% expect global M&A activities to be more active.
Given a large number of M&A transactions in the past year, many companies will focus more on consolidating recently acquired assets over the next 12 months, said Yuan Guitai, managing partner of Ernst & Young in Central China.
At the same time, companies are actively evaluating their existing investment portfolios. This is likely to prompt a new batch of assets to enter the market in the next 12 to 14 months, and private equity funds are expected to buy a large number of assets, Yuan said.
Six major sectors, including financial services, medical care, telecommunications, hotels and construction and the oil and gas industry are most likely to become hot areas for Chinese companies to merge.