Hong Kong is the best anchor for Chinese firms seeking global waters

AI Summary

Hong Kong serves as the preferred base for Chinese firms expanding their global investments, with outward direct investment from China rising 7 percent and overseas mergers and acquisitions rebounding significantly. This shift illustrates China's evolving approach to global deal-making and regulatory oversight.

Last year, China’s outward direct investment climbed 7 per cent to US$174 billion while overseas mergers and acquisitions rebounded to over US$43 billion, up nearly 40 per cent, according to EY data. Clearly, China’s appetite for global deal-making has returned. But the approach has changed. A decade ago, outbound investment was largely asset-driven, shaped by relatively light regulatory constraints and limited oversight. The prevailing mindset was simple: enter the market at all costs and fix...