China M&A 2025 review and outlook

February 2026

China’s mergers and acquisitions (M&A) market recorded a significant rebound in 2025. Total disclosed deal value exceeded USD 400 billion, representing a 47% year-on-year increase. Deal volume surpassed 12,000 transactions, up nearly 20% compared with the previous year. The drivers of the boom—including ongoing restructuring and consolidation, as well as strong liquidity—all remain intact and PwC expects this activity to accelerate in the coming year.

The report notes that the strong rebound in China’s M&A market was primarily driven by domestic strategic investments. Over the year, these accounted for 3,639 M&A transactions with a total deal value of USD 239 billion (+83% year-on-year). There were 34 mega-deals in this segment. More than half were led by state-owned enterprises, with a strong focus on national strategic industries such as semiconductors, artificial intelligence and new energy. This reflects deepening industry consolidation and upgrading under policy guidance.