China’s construction & real estate industry sees a drop of 28.1% in deal activity in Q1 2020

21 April 2020 (Last Updated April 21st, 2020 13:26)
China’s construction & real estate industry sees a drop of 28.1% in deal activity in Q1 2020

China's construction & real estate industry saw a drop of 28.1% in overall deal activity during Q1 2020, when compared with the last four-quarter average, according to GlobalData’s deals database.

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A total of 46 deals worth $4.25bn were announced in Q1 2020, compared to the last four-quarter average of 64 deals.

M&A was the leading category in the quarter with 42 deals which accounted for 91.3% of all deals.

In second place was venture financing with three deals, followed by private equity with one transactions, respectively accounting for 6.5% and 2.2% of overall deal activity in the country's construction & real estate industry during the quarter.

In terms of value of deals, M&A was the leading deal category in China's construction & real estate industry with total deals worth $3.25bn, followed by private equity deals totalled $1000m.

China construction & real estate industry deals in Q1 2020: Top deals

The top five construction & real estate deals accounted for 60.3% of the overall value during Q1 2020.

The combined value of the top five construction & real estate deals stood at $2.56bn, against the overall value of $4.25bn recorded for the month.

The top five construction & real estate industry deals of Q1 2020 tracked by GlobalData were:

1) SoftBank Vision Fund's $1bn private equity deal with Beijing Freedom Information Technology

2) The $976.5m acquisition of Wuhan Huazi Enterprise Management Consultation by China Jinmao Holdings Group

3) Shenzhen Ying’an Financial Consultant Enterprise (Limited Partnership)'s $228.19m acquisition of China Vanke

4) The $181.35m acquisition of Sichuan Road & Bridge by Sichuan Railway Industry Investment Group

5) Shanghai North Jingdezhen Ceramic Culture and Tourism Development's acquisition of Nanjing Inform Storage Equipment for $177.02m.

Verdict deals analysis methodology

This analysis considers only announced and completed deals from the GlobalData financial deals database and excludes all terminated and rumoured deals. Country and industry are defined according to the headquarters and dominant industry of the target firm. The term 'acquisition' refers to both completed deals and those in the bidding stage.

GlobalData tracks real-time data concerning all merger and acquisition, private equity/venture capital and asset transaction activity around the world from thousands of company websites and other reliable sources.

More in-depth reports and analysis on all reported deals are available for subscribers to GlobalData’s deals database.