After a series of eyebrow raising megadeals in recent years, a number high-profile but less controversial Chinese deals are now grabbing the limelight, including Sanyuan and Fosun's takeover of St-Hubert; Fosun and Nanjing Nangang's stakes in Koller; and Hytera's acquisition of Norsat.
These new deals show the country's foreign investment is stepping out of the fast lane into one focused on sensible investment and quality growth.
A report by accounting firm PwC showed that foreign mergers, and acquisitions by Chinese investors in 2016 more than tripled from the previous year. Much of this involved an increase irrational phenomena and even the suspected transfer of assets, but things are now changing.
Since late 2016, government agencies have been reinforcing inspections on authenticity and regulation compliance of outbound investment in a bid to improve returns and control risk.
In the first seven months of 2017, China's non-financial outbound direct investment (ODI) dropped 44.3 percent year on year to $57.2 billion, official data showed.
Outbound investment in real estate, culture, sports and entertainment sectors saw substantial declines during the period, the Ministry of Commerce said.
Meanwhile, involvement in billion-dollar-projects has decreased significantly, with the majority of the deals announced this year worth less than $1 billion.
Authorities will roll out a negative list for programs that forbid and limit foreign investments and facilitate the implementation of those where the government wants to encourage foreign companies to invest, said Huo Jianguo, vice chairman of the China Society for WTO studies.
China should make its foreign investment environment "more law-based, international and convenient" to increase growth and raise the quality of foreign investment, according to a document by the State Council. (Source: China Daily)
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