With private companies such Fosun International in the vanguard, Chinese firms have spent a record $102 billion so far in 2015, according to data from Thomson Reuters. China's large state-owned enterprises (SOE) played a less active role this year than in their mid-2000s heyday, which some bankers believe to be the result of President Xi Jinping's anti-graft investigations making some officials cautious when it comes to big decisions.

Increased domestic M&A

As well as economic growth slowing to its weakest pace in years, bankers and analysts say a weakening yuan, environmental issues and the need to acquire cutting-edge technology to improve manufacturing will contribute to Chinese firms searching for deals overseas next year. They also expect more M&A among Chinese companies, especially technology firms, as the slower economic growth and intense competition compel them to pursue new avenues for revenue growth.

‘Drive consolidation’

‘The SOE reforms and domestic industry consolidation are the other themes likely play out strongly next year’, said Brian Gu, co-head of Asia-Pacific M&A at JP Morgan Chase in Hong Kong. ‘As growth shrinks in many sectors, you will see companies moving in to drive consolidation and becoming aggressive in some situations, something which is emerging as a new theme in China.’ Source: Reuters