China’s M&A Kings Cash Out Overseas Bets at Near-Record Pace
- Higher valuations, demand drive reversal of acquisition spree
- Firms may be unable to buy similar assets again once they exit
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Just a few years ago, Chinese firms spent lavishly overseas on everything from luxury hotels to soccer clubs. Now they are heading for the exit amid rising demand for anything that throws off cash.
Companies in China announced divestment plans of their overseas assets worth $10.5 billion so far this year, the second-highest total since at least 1998, according to data compiled by Bloomberg. At the current pace, 2021 could surpass last year’s $15 billion sum.