1. Deals Analysis
November 19, 2020

China’s technology industry sees a drop of 12.2% in deal activity in October 2020

By Carmen

China’s technology industry saw a drop of 12.2% in overall deal activity during October 2020, when compared with the last 12-month average, according to GlobalData’s deals database.

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A total of 165 deals worth $17.36bn were announced in October 2020, compared to the 12-month average of 188 deals.

Venture financing was the leading category in the month in terms of volume with 136 deals which accounted for 82.4% of all deals.

In second place was M&A with 23 deals, followed by private equity with six transactions, respectively accounting for 13.9% and 3.6% of overall deal activity in the country’s technology industry during the month.

In terms of value of deals, M&A was the leading deal category in China’s technology industry with total deals worth $14.79bn, while venture financing and private equity deals totalled $2.55bn and $17.86m, respectively.

China technology industry deals in October 2020: Top deals

The top five technology industry deals accounted for 92.9% of the overall value during October 2020.

The combined value of the top five technology deals stood at $16.13bn, against the overall value of $17.36bn recorded for the month.

The top five technology industry deals of October 2020 tracked by GlobalData were:

1) SK Hynix’s $9bn asset transaction with Intel

2) The $5.59bn merger of DouYu International Holdings and HUYA

3) CITIC Industrial Fund, Danhe Capital, Dehong Capital, DST Global, GIC, Jinglin Equity Investment, Temasek Holdings (Private) and Trust Capital Services (India)’s $1bn venture financing of Zhenguanyu Tech

4) The $315m venture financing of ZKH Industrial Supply by China Structural Reform Fund, Shenzhen Cowincapital, Eastern Bell Capital, Genesis Capital China, GLP-C&D Equity Investment Fund, Legend Capital, Matrix Partners China, Tencent Holdings, Tiger Management, Xiamen C&D and Yunfeng Capital

5) China Fortune-Tech Capital, China Integrated Circuit Industry Investment Fund, China Internet Investment Fund, CMB International Capital Management (Shenzhen), Forebright Capital Management, Haitong Kaiyuan Investment, Wingtech Technology, Lenovo Capital and Incubator Group, Sequoia Capital China, Shenzhen Transsion Holdings and Xiaomi Changing Industrial Fund’s venture financing of SmartSens Technology for $225m.

Verdict deals analysis methodology

This analysis considers only announced and completed deals from the GlobalData financial deals database and excludes all terminated and rumoured deals. Country and industry are defined according to the headquarters and dominant industry of the target firm. The term ‘acquisition’ refers to both completed deals and those in the bidding stage.

GlobalData tracks real-time data concerning all merger and acquisition, private equity/venture capital and asset transaction activity around the world from thousands of company websites and other reliable sources.

More in-depth reports and analysis on all reported deals are available for subscribers to GlobalData’s deals database.

 

Verdict deals analysis methodology

This analysis considers only announced and completed cloud-deals deals from the GlobalData financial deals database and excludes all terminated and rumoured deals. Country and industry are defined according to the headquarters and dominant industry of the target firm. The term ‘acquisition’ refers to both completed deals and those in the bidding stage.

GlobalData tracks real-time data concerning all merger and acquisition, private equity/venture capital and asset transaction activity around the world from thousands of company websites and other reliable sources.

More in-depth reports and analysis on all reported deals are available for subscribers to GlobalData’s deals database.

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