The raging need for Chinese oligarchs and corporations to park their cash offshore, and as far away as possible from the the mainland and the risk of sudden, sharp (10%-15%) devaluation, has resulted in not only an epic Vancouver housing bubble, or the predicted parabolic surge in bitcoin price (which has soared by 50% in just a few weeks), but an unprecedented M&A spree for US-based assets. We profiled as much in late March in a post titled "Eight Things The Chinese Are Scrambling To Buy In America."
And while overall M&A in the US is down substantially YTD, sliding 28% by volume (but only 4% in number of deals) mostly as a result of the volatile market in the early part of the year as well as the chilling effect of Congressional crackdown on tax-inversion deals (such as the pulled Pfizer-Allergan mega-merger), and the lack of any blockbuster mega-cap (>$25 billion) deals, China not only refuses to go away, but the level of Chinese cross-border M&A chasing after US targets is literally off the charts.
Here are the details from Goldman:
Cross-border, while down in aggregate, continues to gain share at 34% of total YTD volumes (a 6-year high). While the distribution of acquirers and targets remains relatively well diversified, one trend has been increased Chinese volumes. Notably, China has accounted for 26% of global cross-border activity YTD, which is nearly 3x higher than the next highest year (2013).
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