China is about to crash (update 3): China's Mergers and Aqusistions down

The problem with China is this, the market has no idea what is true with their 'goverment' based figures. Yes, short term rallies on what appears to be a Goldilocks ecomomy. Which we know in no other term as bullshit. But, until their (China's) private sector starts to groan and topple (with evidence from the private sector minus goverment/planning sector) with high leverage, profit shortfalls, inflation and a eventual spill over from their housing bubble popping; in the meantime reports like this are followed very closely


From WSJ

"BEIJING (Caixin Online) — The value of merger-and-acquisition transactions on the Chinese mainland and Hong Kong dropped 27.5% in the first three quarters of 2010 to $70.5 billion, due to smaller transactions.

The number of M&A transactions reached 533, up 1.9% from the same period of 2009, according to a report released by data provider Mergermarket.

Among the 533 transactions, 506 were of small size in value, according to Mergermarket.

“China’s economic slowdown is likely to bring challenges to Chinese buyers. Chinese companies should be cautious despite appeals from natural-resource companies to Chinese buyers,” said Wang Xiaomo, the editor of Mergermarket’s China department.

In terms of sectors, there were 117 transactions in the chemical industry, totaling $12.7 billion. The value of transactions in the finance industry accounted for 26% of total transactions.

In terms of value of transactions, China International Capital Corp. acted as advisor for transactions totaling $20.2 billion. Deutsche Bank was the advisor for 14 transactions, the highest number among all investment banks."