Asia Economic Prospects, June 2023

VideoInterview 15 June

Asia Economic Prospects, June 2023

While Asia total M&A is down more than 37% YTD, Asia inbound M&A deal value has increased 54.6% in the past three years (vs the three years prior to the global pandemic). We talked to economists Aidan Yao and Viola Wang and Mergermarket China Managing Editor Lisha Zhou to understand what macroeconomic undercurrents are driving that unabated attraction for Asian assets. Here are the highlights:  

  • The relatively stable environment in Asia, against the backdrop of the global economic slowdown continues to attract inbound investments into Asia and drive inter-Asia cross border M&A activity.  

  • Emerging Asian countries, including Vietnam, Malaysia, and Indonesia, will attract foreign acquirers on strong demographic fundamentals, ability to innovate and strong economic growth.

  • Greater China's outbound M&A activity into Southeast Asia saw a 20.6x YoY increase to USD 31bn 2023YTD driven by strong global demand for Southeast Asian manufacturers’ products.

  • Beijing’s willingness to stimulate the economy via greater domestic consumption and technological innovation will be paired with greater openness to foreign investors in sectors such as automotive, consumer and biotech.

  • China’s central bank will make the RMB easier to use for foreign investors in investments and M&A, against the decline of the US dollar dominance.