Mergers and acquisitions in China will remain subdued for the rest of the year after the value of deals more than halved in the first six months, PricewaterhouseCoopers LLP (PwC) said.
Companies announced 1,427 deals valued at US$45.8 billion in the first half, compared with 1,812 transactions worth US$101.3 billion a year earlier, PwC said.
“Confidence is seeping back into the domestic economy, but investment by foreign buyout firms or other financial investors is unlikely to reach 2008 levels until 2011,” Benjamin Ye (葉常青), a Shanghai-based partner at PwC’s Transaction Services division, told reporters in the city yesterday.
China’s GDP expanded 7.9 percent in the second quarter as the nation became the first major economy to rebound from the global recession, helping drive consolidation in industries such as steel, cement and financial services.
Ping An Insurance (Group) Co (中國平安), China’s second-biggest insurer, on June 12 agreed to pay US$3.2 billion to boost its stake in Shenzhen Development Bank Co (深圳發展銀行) to almost 30 percent from 4.68 percent, making it the biggest transaction on China this year.
Meanwhile, China’s planned small-company stock exchange received 108 applications for initial public offerings (IPO) on its first day of accepting proposals as its launch nears, a state news agency said yesterday.
The Growth Enterprise Board planned for the southern financial center of Shenzhen is meant to nurture smaller, innovative companies. The government has not said when trading will start, but analysts expect the first IPO in October or November.
The board began taking applications on Sunday, the Xinhua news agency said. It said regulators would need three months to review each application.
Authorities have promised for several years to create an exchange to help smaller and private companies that struggle to raise money in a system where state-owned banks lend mostly to big state-owned companies.
The launch comes at a time when Chinese markets are recovering from a sharp decline last year. The benchmark index has risen 80 percent this year amid government stimulus spending to counter the global downturn.
Contract chipmaker United Microelectronics Corp (UMC, 聯電) yesterday said it has signed a memorandum of understanding (MOU) with Polar Semiconductor LLC to collaborate on the production of 8-inch wafers in the US. The collaboration aims to strengthen 8-inch wafer manufacturing in the US amid Washington’s efforts to increase onshore manufacturing of semiconductors, contribute to supply chain resilience against shifting geopolitical dynamics, and ensure a secure domestic supply of power semiconductors critical to automotive, electric grids, robotic manufacturing and data centers, the companies said in a joint statement. Under the MOU, Polar and UMC will identify devices for Polar to manufacture at
TECH TITANS: Amazon’s latest chip joins Google in competing for the 90 percent market share held by Nvidia, which claims it is ‘a generation ahead of the industry’ Amazon Web Services (AWS) on Tuesday launched its in-house-built Trainium3 artificial intelligence (AI) chip, marking a significant push to compete with Nvidia Corp in the lucrative market for AI computing power. The move intensifies competition in the AI chip market, where Nvidia dominates with an estimated 80 to 90 percent market share for products used in training large language models that power the likes of ChatGPT. Google last week caused tremors in the industry when it was reported that Facebook-parent Meta Platforms Inc would employ Google AI chips in data centers, signaling new competition for Nvidia. This followed the release last month of
Two companies wholly owned by the daughter of the founder of Hon Hai Precision Industry Co (鴻海精密) on Monday reported to the Taiwan Stock Exchange that they would dispose of all of the Hon Hai shares they hold. In filings with the exchange, Hong Wei Investment Co (鋐維) said it would sell the 2.771 million Hon Hai shares it holds and Frontier Investment Corp (承鋒投資) said it would sell its 2.409 million Hon Hai shares from tomorrow until Jan. 3 next year. The two companies are wholly owned and chaired by Shirley Gou (郭曉玲), the eldest daughter of Hon Hai founder Terry
TARIFF TALKS: The US secretary of commerce is eyeing more than US$300 billion in investments and said Taiwan would train US workers, but Taipei has denied the latter US Secretary of Commerce Howard Lutnick said the US is expecting a large investment pledge from Taiwan in trade talks, while President William Lai (賴清德) listed areas that need improvement in order for projects to be completed. “We’re in the midst of discussions,” Lutnick said on Wednesday. “But the fact is, this administration’s goal is to bring semiconductor manufacturing to America.” Lai on Wednesday said Taiwan is supportive of US President Donald Trump’s goal of reindustrializing the US, including efforts to ramp up semiconductor production. Such a goal would require the US to reduce its reliance on Taiwan as a key source
RSS