Last year, China’s outward direct investment climbed 7 per cent to US$174 billion while overseas mergers and acquisitions rebounded to over US$43 billion, up nearly 40 per cent, according to EY data. Clearly, China’s appetite for global deal-making has returned.
But the approach has changed. A decade ago, outbound investment was largely asset-driven, shaped by relatively light regulatory constraints and limited oversight. The prevailing mindset was simple: enter the market at all costs and fix problems later.
Long regarded as a threshold between East and West, Hong Kong is becoming an increasingly important gateway to global success, as the city can clear four major barriers in one move.
Second, the credibility problem. When it comes to important markets, Hong Kong lends credibility. Europe, the Middle East and Southeast Asia all view Hong Kong as a more “legible” jurisdiction, one that adheres to international accounting and corporate governance standards, enabling clear, comparable financial reporting.
