HK ranks #1 in M&A and IPO deals hub globally for 5 years

   M&A and IPO deal activities in Hong Kong and Mainland China are likely to remain cool in 2019 and 2020 amid the re-escalation of trade tensions with the US, as well as the country's slower economic growth, according to the fifth annual Global Transactions Forecast, produced by global law firm Baker McKenzie in conjunction with economic consultancy Oxford Economics.
  The report, based on forecast macroeconomic indicators from Oxford Economics along with insights from Baker McKenzie partners in 42 markets worldwide, projects that global deal-making will experience a continued hangover in 2020 because of ongoing worldwide economic uncertainty and the risk of a global recession.
  M&A globally is projected to decline from US$2.8 trillion in 2019 to US$2.1 trillion in 2020. A similar downward trend in IPO proceeds is also expected, pulling back from US$152 billion in 2019 to US$116 billion.
  Due to a significant slowdown particularly in cross-border activity, Asia-Pacific deal-making has fallen from highs in 2018. The US-China trade dispute was clearly evident, as well as sluggish Chinese outbound deals due to Chinese government restrictions on outward investment.
  China's M&A activity (inbound and domestic) is expected to drop to US$248 billion in 2019 (a year-on-year decline of 17.6%), with an estimated 3,108 deals transacted.
  China's IPO activity in 2019 is predicted to be on par with 2018 level, reaching US$16.4 billion, with domestic IPO continuing to be the main driver of equity capital raising activities.
  On the Hong Kong front, total M&A is expected to trend down to US$43.2 billion while IPO value is forecasted to drop to US$15.9 billion this year.
  For five consecutive years, Hong Kong ranks #1 among all economies globally in terms of attractiveness for conducting transactions.
  Looking ahead, the Forecast predicts China domestic and inbound M&A activity to slump further in 2020 to US$218 billion (2,772 deals), but rebound to US$287.8 billion (3,118 deals) in 2021 and US$338.4 billion (3,176 deals) in 2022, attributed to a more supportive global trade backdrop and favorable market valuations.