CHINA FIRMS’ BUYING SPREE GRINDS TO HALT
Cross-border purchases plunge 67pc in first 4 months
Taiwan’s dollar has also surged 7.7 per cent against the greenback in the past year, the most among regional peers.
While that poses a threat to an economy reliant on exports, Taiwan has weathered the impact so fall through, while others are shunning Chinese bids in favour of lowerpriced offers from elsewhere.
“China’s outbound mergers and acquisition (M&A) activity will likely remain slow for the rest of this year,” said Baker & McKenzie LLP partner Bee-chun Boo.
The drop-off in deals should help stem capital flight and stabilise China’s battered currency. But it could also undermine a big pillar of support for corporate valuations around the world.
Last year’s 137 per cent surge in Chinese takeovers vaulted the country to No. 2 behind the United States on the ranking of global acquirers.
Through the end of September, authorities planned to curb offshore acquisitions of US$1 billion or more in industries outside far. Orders for outbound shipments jumped 12 per cent in March from a year earlier.
“Apple is a driver to Taiwan stocks to breach the 10,000 mark,” said Hua Nan Securities vice-president Co David Lu. a buyer’s core business, said people.
They would also ban most investments of US$10 billion or more and restrict foreign property purchases exceeding US$1 billion by stateowned enterprises, they added.
“Capital controls have clearly had a dampening effect on China’s outbound M&A activity,” said Credit Suisse Group AG head of mergers and acquisitions for the Asia-Pacific region, Joseph Gallagher. “Chinese firms, especially those that are domesticallylisted, will likely have a much harder time to do deals as they typically do not have offshore financing vehicles or access to offshore funding,” he said. Bloomberg
Capital controls have clearly had a dampening effect on China’s outbound M&A activity.
The Taiex rose 0.3 per cent to 10,001.48 at the close yesterday, taking its gain for the year to more than eight per cent.
TSMC was the biggest boost as it traded at a record price. Bloomberg
Taiwan Semiconductor Manufacturing Co, an Apple Inc supplier, was the biggest boost to Taiwan’s benchmark index yesterday as it traded at a record price.