China's local mergers and acquisitions maintain high growth in the second half

Zhou Xiaoyun The recent US debt crisis triggered a ripple effect, global capital market shocks. What impact will this have on the mergers and acquisitions market in the second half?　　"First Financial daily" reporter interviewed the Australian Society of Accountants Shanghai Committee vice president, Deloitte Enterprise Financial advisory services East China partner Tang Yinguang.　　First Financial daily: The U.S. debt crisis on European and American capital markets, the impact is expected to the second half of the domestic and overseas mergers and acquisitions market process will have what effect? Tang Yinguang: From the recent announcement of domestic enterprises on the U.S. Export Data and order volume, the situation is not optimistic. The impact of the US debt crisis on the domestic market in Europe and the United States is expected to be short-lived.　　For some European and American enterprises, the financial costs of participating in mergers and acquisitions will increase, so this will have a negative impact on foreign investment in their local and Chinese mergers and acquisitions business in the second half of the year. On the other hand, the crisis has increased opportunities for mergers and acquisitions in Chinese companies.　　Overall, China is still a relatively good investment market in the world, I believe it will continue to attract a lot of money chasing, so we expect the second half of China's local mergers and acquisitions will maintain a high growth trend. In addition, the first half of this year, Chinese companies to invest in overseas growth spurt, the positive trend is expected to remain in the second half.　　From the full year level, it is expected that 2011 will continue to maintain a good momentum of growth. Daily: From the merger and acquisition industry structure, this year's merger and acquisition activities are mainly concentrated in which sectors?　　What are the structural changes? Tang Yinguang: First of all, from the Chinese enterprises to overseas investment, this year's mergers and acquisitions and industry has shown some new features, due to Chinese companies continue to focus on foreign advanced technology and Consumer brands, the first half of this year, Chinese companies in the industrial Technology and brand consumer-related industries in the number of overseas mergers and acquisitions　　This trend will continue in the second half of the year. Relatively speaking, in previous years, the number of major cases of raw materials, resources, mergers and acquisitions cases have decreased. The main reason is the increase in the price of raw materials this year, affecting the cost of related mergers and acquisitions abroad.　　But with the movements of commodity prices, we expect more resources to be disclosed in the second half of 2011.　　Daily: What are the expectations of the industry and field of mergers and acquisitions in China this year? Tang Yinguang: The domestic real estate merger and acquisition Fair is expected to remain active. In the environment of domestic real estate regulation, continuous tightening of credit policies and reduction of financing channels, some housing enterprises with weak financial strength and difficulty in financing are faced with the need of integration of mergers and acquisitions. Recently, I have also contacted some private equity funds, are negotiating real estate acquisition projects.　　The consolidation of mergers and acquisitions in the second half of the year is expected to continue without significant changes in policy. In addition, a number of consumer, medical and educational sectors around China's overall income growth, as well as High-tech biotechnology, high new materials and environmental protection projects stimulated by the State policy, are also the hot mergers and acquisitions areas that are highlighted. On the other hand, mergers and acquisitions in the domestic Internet sector are expected to accelerate. In 2010In the second half of a group of internet companies listed in the United States, they have access to new funds, may be through mergers and acquisitions to continue to expand their range of products and services, and in the upstream and downstream industrial chain for investment cooperation. Daily: For some private-equity investors in China, this year seems to be a turning point in the "fever is receding".　　What do you think of this trend of change? Tang Yinguang: The supply and demand contradictions between the domestic capital adequacy and the relatively few quality projects are now appearing. Competition is intensifying as investors scramble for a piece of the pie. At present, the requirements of private enterprises for investment funds are also improving.　　Not only the capital requirements, but also hope that investment funds in the participation of enterprises can help enterprises to develop synergy, bring more market and better development experience. Future private equity investment coverage is expected to be wider and deeper into the mainland. The competition in this industry will be more intense than before, when more effort is needed to dig out good projects.