(Yicai Global) July 10 -- Stricter review of foreign investment in the US and EU has driven Chinese mergers and acquisitions abroad in the first half to their lowest level in seven years at a value of USD19.4 billion. 

This figure represents a drop of a full three-quarters , 21st Century Business Herald reported today, citing statistics by London-based market analytics firm Refinitiv, which show the number of transactions also slid to about 250 from 400 compared to the same period last year.

"Under the influence of inherent trade frictions and the foreign exchange policy environment, investment in the US has conspicuously decreased, as has investment in Europe," Alan Wang, a partner specializing in international M&As at the Beijing and Shanghai offices of the venerable London-headquartered international law firm of Freshfields Bruckhaus Deringer, said yesterday.

Chinese invested USD1.4 billion in US M&As in the first half in a 20 percent drop, with a volume of 23, down from 49 in last year' first half. China splurged almost USD35 billion on an American M&A spree in the takeover heyday of 2016, by contrast.  

China's retreat from the European M&A theater is even more pronounced. Its nationals shelled out USD2.4 billion this year, as against 46.2 billion in last year's first half buying up or absorbing its western continental neighbor's companies. This year's tally of 81 firms likewise starkly contrasts with the 112 bagged in the first half of last year. 

The tightening scrutiny of foreign M&As by the US and Europe is predicted to maintain this steadily depressed trend, so don't look for any great changes in the second half, Wang advised.

Editor: Ben Armour