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Chinese capital constraints send shock through global M&A

For months, Chinese conglomerate Fujian Thai Hot has been on the cusp of completing a $1.4bn buyout of a Hong Kong-based life insurer.

There has been just one problem: the cash needed to pay for the deal has been stuck inside China, awaiting a final regulatory sign-off from the country’s foreign exchange watchdog.

Thai Hot finally secured clearance to wire the money out of China in the past few days but the hurdles that held up the deal have been emblematic of the challenges that Chinese acquirers now face in pursuing overseas transactions.