Private enterprises increasingly active in mergers and acquisitions

Privately owned Chinese enterprises have been increasingly active in outbound mergers and acquisitions.

The value of private enterprises' outbound M&A exceeded that of State-owned enterprises for the first time last year, according to a recent report.

Private enterprises' outbound M&A volume in 2016 was about three times that of the previous year. Its value was $116.3 billion, which was almost double that of SOEs, said the report by consulting firm PricewaterhouseCoopers.

Moreover, Chinese private companies tend to gain advanced technologies, management skills, brands and overseas markets through outbound M&A, and are more diversified in the areas of interest, said Wang Chaoyong, founder and CEO of China Equity Group.

"While SOEs mostly buy overseas companies that are in the traditional industries, such as manufacturing, private enterprises also pay attention to a wider range of sectors that would cater to the needs of China's middle class, such as the movie, sports and healthcare industries," he said.