Reviewed by Gotrade Internal Analyst
Gotrade News - Chinese companies are finally reopening their outbound investment taps after holding back for a decade. This wave of acquisitions signals a major strategic shift for the global market.
M&A volume from China neared the $12 billion mark in January 2026. That hits the books as the highest monthly volume since way back in 2017.
Key Takeaways:
Global acquisition deals spiked sharply at the start of the year.
Retail and commodity sectors are the main targets for expansion.
Strong stock market sentiment is boosting corporate confidence.
The shopping list this time includes big names like German sports brand Puma SE. Canadian miner Allied Gold Corp has also made it onto the target list.
Bloomberg reports this trend as a sharp U-turn after a long period of capital tightening. Previously, Beijing had capped outbound investment to rein in excessive spending.
Richard Griffiths, BNP Paribas' Head of M&A for Asia Pacific, notes that acquisition interest from China is picking up fast. Plenty of new situations are being evaluated, with big deals predicted to drop this year.
Fierce domestic competition is pushing companies to scout for growth opportunities overseas. The improved financial muscle of local brands is also a major driving factor.
Targeting Strategic Sectors
Luckin Coffee Inc is now eyeing international assets to expand its premium market reach. This move comes after they successfully leapfrogged Starbucks in the Chinese domestic market.
The company is reportedly looking at Nestle’s Blue Bottle Coffee to boost its global profile. They also briefly considered a bid for Costa Coffee, owned by Coca-Cola.
Expansion is also hitting vital energy sectors like the electricity market in Chile. China Southern Power Grid is trying to up its stake in Transelec SA via a deal worth $4 billion.
Aluminum Corp of China is also acquiring a controlling stake in Cia Brasileira de Alumínio. This strategic deal involves the global mining group Rio Tinto.
A Boost from the Stock Market
The stock market rally is providing a massive confidence boost for corporate boardrooms. Hong Kong's Hang Seng Index recorded a rally of 28% throughout 2025.
The index has continued to strengthen into 2026, hitting fresh highs. Meanwhile, the CSI 300 Index in mainland China has climbed 20% over the past year.
Morgan Stanley sees the current M&A environment as highly constructive for cross-border activity. Management teams are now more proactive in advancing strategic priorities on the global stage.
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Global acquisition deals spiked sharply at the start of the year.
Retail and commodity sectors are the main targets for expansion.
Strong stock market sentiment is boosting corporate confidence.
The shopping list this time includes big names like German sports brand Puma SE. Canadian miner Allied Gold Corp has also made it onto the target list.
Bloomberg reports this trend as a sharp U-turn after a long period of capital tightening. Previously, Beijing had capped outbound investment to rein in excessive spending.
Richard Griffiths, BNP Paribas' Head of M&A for Asia Pacific, notes that acquisition interest from China is picking up fast. Plenty of new situations are being evaluated, with big deals predicted to drop this year.
Fierce domestic competition is pushing companies to scout for growth opportunities overseas. The improved financial muscle of local brands is also a major driving factor.
Targeting Strategic Sectors
Luckin Coffee Inc is now eyeing international assets to expand its premium market reach. This move comes after they successfully leapfrogged Starbucks in the Chinese domestic market.
The company is reportedly looking at Nestle’s Blue Bottle Coffee to boost its global profile. They also briefly considered a bid for Costa Coffee, owned by Coca-Cola.
Expansion is also hitting vital energy sectors like the electricity market in Chile. China Southern Power Grid is trying to up its stake in Transelec SA via a deal worth $4 billion.
Aluminum Corp of China is also acquiring a controlling stake in Cia Brasileira de Alumínio. This strategic deal involves the global mining group Rio Tinto.
A Boost from the Stock Market
The stock market rally is providing a massive confidence boost for corporate boardrooms. Hong Kong's Hang Seng Index recorded a rally of 28% throughout 2025.
The index has continued to strengthen into 2026, hitting fresh highs. Meanwhile, the CSI 300 Index in mainland China has climbed 20% over the past year.
Morgan Stanley sees the current M&A environment as highly constructive for cross-border activity. Management teams are now more proactive in advancing strategic priorities on the global stage.
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Reference:
Bloomberg, China Is Snapping Up Overseas Assets Again From Puma to Metals. Accessed on February 13, 2026
Indexbox, Chinese Overseas M&A Resurges in 2026, Hits $12B in January. Accessed on February 13, 2026
Featured Image: Nikkei Asia
