Private firms take lead in overseas M&As

State-owned companies' share of total deals abroad declines to 38%, says KPMG report

Private Chinese enterprises, despite having relatively little capital, took part in more overseas mergers and acquisitions than their State-owned counterparts did in the past three quarters.

That helped diversify the country's channels for making outbound direct investments.

The global accounting firm KPMG LLP, in a report on China's economic globalization released on Tuesday, said private Chinese companies are an emerging force in the overseas investment market.

In the third quarter of the year, private companies took part in 62.2 percent of the M&A deals that involved Chinese companies during that period, up from 50 percent during the first half of this year, the report said.

Private investors have been making far more overseas M&A deals in the past four years, with their proportion of the total going from 44 percent to more than 62 percent. At the same time, that of State-owned companies went from 56 percent to 38 percent, the report said.

"Unlike State-owned enterprises, which tend to concentrate on acquisitions in the energy and finance industries, private companies' M&A deals have become increasingly varied," said Peter Fung , chairman of KPMG Global China Practice.

We recommend: A Decade of Fastest Development Eastern Boom Lightens Western Gloom Oct. data released, inflation slows Gold collection issued to mark 'Year of Snake' China: A Fast-growing Force in IPR 13th Int'l Automobile Industry Exhibition China Int'l Industry Fair opens in Shanghai Caofeidian coal wharf put into use Canton Fair wraps up on Sunday