Overseas M&A deals 'will recover'

Overseas mergers and acquisitions by Chinese enterprises will recover this year on the back of a stronger yuan, with the new Sino-EU investment pact lending further stimulus to the deals, a leading law firm said on Wednesday.

"The appreciation of the Chinese currency may make overseas assets cheaper for Chinese enterprises and encourage more outbound acquisitions," said Alan Wang, partner at Freshfields Bruckhaus Deringer LLP, a London-headquartered multinational law firm, which is a leading legal adviser for global M&As.

Since the beginning of the second half of 2020, the exchange rate of the onshore yuan has appreciated from about 7.1 against the greenback to about 6.46 as of Wednesday. Some experts expect the yuan to gain further this year.