China M&A 2025 mid-year review and outlook
August 2025
China’s M&A transaction value reached more than US$170bn in the first half of 2025, led by a surge in domestic strategic deals. This is an increase of 45% year on year. Transaction volumes also continued their steady recovery. With SOE reforms accelerating, multinationals reshaping their portfolios, and private equity funds poised for a wave of exits, PwC expects China’s M&A transaction value to achieve strong double-digit growth for the whole of 2025.
The first half of 2025 saw a continuation of the upward trend in mega-deals (>US$1bn) with 29 such deals compared to 17 in the corresponding period in 2024 and 22 in the second half of 2024; of these, 20 were domestic strategic deals, nearly half of which were driven by SOEs; key sectors such as high-technology (7 mega-deals), healthcare (6) and industrials (5) outperformed.
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Asia Pacific Deals Leader, Asia Pacific Private Equity and Sovereign Investment Fund Leader, PwC China
Tel: +[852] 2289 2400
