The ongoing global geopolitical uncertainties, rising interest rates and climbing inflation continue to pose risks to the mergers & acquisition (M&A) deal activity in Q3 2022. Even though the global deal value saw a 48% year-on-year drop in Q3 2022, China still managed to record 50% growth during the quarter, according to GlobalData, a leading data and analytics company.

GlobalData’s latest report, “Mergers and Acquisitions Deals by Top Themes and Industries in Q3 2022,” reveals that a total of 377 M&A deals were announced in China in Q3 2022 with a combined transaction value of $36 billion compared to the 324 deals and a total transaction of $23 billion in Q2 2022.

Priya Toppo, Thematic Intelligence Analyst at GlobalData, comments: “The construction sector dominates the China market with a combined deal value of $9.2 billion, an increase of 54% compared to Q3 2021. China also witnessed one of the 10 mega deals this quarter—Xuzhou Construction acquisition of XCMG for $5.8 billion.”

The report also notes that out of 18 sectors, nine sectors—Aerospace, Defence, and Security (ADS), apparel, construction, foodservice, healthcare, oil & gas, packaging, pharma, and power—have reported a quarter-on-quarter increase in deal value in China and the remaining saw a drop.

Toppo concludes: “China M&A activity during Q3 2022 was mostly driven by themes including online retail, and sustainable construction. China has already started to promote green buildings and the industry is likely to see more transaction activity in the future, especially in different segments like commercial construction, real estate construction, industrial construction, and energy & utility construction.”