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  "documentTitle": "China M&A 2024 Review and Outlook",
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      "text": "PE/VC and financial buyer deals",
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      "text": "PE (M&A activity involving a financial sponsor) continued to face challenges, with the overall transaction volume falling by 11% and value by 18% to their lowest levels since 2014.",
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      "text": "PE fundraising swung sharply in favour of renminbi raises with dollar funds generally struggling to raise capital specifically for China investment affected by geo-political issues, economic weakness, and uncertainties around policies and regulations affecting certain sectors; a perceived benefit in investing from domestic capital pools was a clear factor in the market.\nPE (M&A activity involving a financial sponsor) continued to face challenges, with the overall transaction volume falling by 11% and value by 18% to their lowest levels since 2014; the unfavourable economic and geo-political conditions impacted activity, with many foreign PEs becoming cautious about committing to new investments; there were 18 mega-deals in 2024, 8 of which were led by state-backed investors.\nIn terms of volumes, industrials, high tech and healthcare continued to be top three most favored sectors; while consumer deals continued to trend down.\nThere was a decline in value terms in almost all sectors and the few mega deals were focused on government encouraged themes, such as high tech (4 mega-deals in AI, data storage, etc.), energy transition (4 mega-deals in hydro, nuclear power, etc.), and industrials (3 mega-deals in air technology and NEV).\nVenture capital investment volumes (smaller deals with financial sponsors - values <US$10m) were the one bright spot with volumes increasing by nearly two thirds to over 6,000 deals; high-tech (39%) and industrial (21%) deals accounted for 60% of the deal volume, indicating strong activity in early stage fundraising with AI-related transactions one of the drivers of this activity.\nPE exits held up at reasonable levels overall, reflecting some backlog with many PEs under pressure to return money to LPs whilst at the same time facing lower valuations on sales; behind the scenes we see some uptick in sell-side preparation which is not yet reflected in the announced deal data.\nBut PE-backed (and indeed all) IPO activity was very subdued, especially in the first three quarters of the year.",
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      "text": "Transaction volume: -11%",
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