Market Insights Financial Corporate Finance

Mergers and Acquisitions - Hong Kong

Hong Kong

The transaction value in the Mergers and Acquisitions market is projected to reach US$35.27bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -5.98% resulting in a projected total amount of US$33.16bn by 2025.
The average transaction value in the Mergers and Acquisitions market amounts to US$216.60m in 2024.
From a global comparison perspective, it is shown that the highest transaction value is reached in the United States (US$1,359.00bn in 2024).

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Analyst Opinion

The Mergers and Acquisitions market in Hong Kong is experiencing a significant uptrend in activity.

Customer preferences: Companies in Hong Kong are increasingly looking to expand their market presence and diversify their offerings through strategic acquisitions. This trend is driven by the desire to gain a competitive edge, access new technologies, and enter new markets.

Trends in the market: One notable trend in the Hong Kong M&A market is the growing interest from mainland Chinese companies. These firms are seeking to leverage Hong Kong's strategic location, well-established financial infrastructure, and international business environment to facilitate their global expansion efforts. Additionally, there is a noticeable increase in cross-border M&A deals involving Hong Kong-based companies, indicating a rising appetite for international partnerships and collaborations.

Local special circumstances: Hong Kong's status as a global financial hub and its proximity to mainland China make it an attractive destination for M&A activities. The city's business-friendly environment, low tax rates, and robust legal system further enhance its appeal to both domestic and foreign investors. Moreover, Hong Kong's strong regulatory framework and well-developed capital markets provide a stable platform for M&A transactions to take place smoothly.

Underlying macroeconomic factors: The ongoing economic integration between Hong Kong and mainland China, as well as the city's position as a gateway to the Chinese market, are key macroeconomic factors driving the M&A market forward. Additionally, Hong Kong's strategic location in Asia, its status as a global financial center, and its strong network of international connections contribute to the overall attractiveness of the region for M&A deals. The stable political environment and the government's support for business development further bolster investor confidence in the market.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.