1. Deals Analysis
February 23, 2021

China’s technology industry sees a drop of 11.40% in deal activity in January 2021

By Carmen

China’s technology industry saw a drop of 11.40% in overall deal activity during January 2021, when compared with the last 12-month average, led by Beijing Xicheng Jinrui Equity Investment Fund Management, Boyu Capital Consultancy, China Development Bank, China ReformLtd, CSC Financial, FountainVest Partners, Goldman Sachs Asia Securities, Haitong Securities, HOPU Jinghua (Beijing) Investment ManagementLimited, JIC TechnologyLimited, JinYi Capital, National Manufacturing Transformation and Upgrading Fund, Primavera Capital Group and Sequoia Capital China’s $700m venture financing of Beijing Wusi Chuangxiang Technology, according to GlobalData’s deals database.

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A total of 171 deals worth $4.61bn were announced in January 2021, compared with the 12-month average of 193 deals.

venture financing was the leading category in the month in terms of volume with 142 deals, which accounted for 83.04% of all deals.

In second place was M&A with 26 deals, followed by private equity with three transactions, respectively accounting for 15.2% and 1.8% of overall deal activity in the China’s technology industry during the month.

In terms of value of deals, venture financing was the leading deal category in China’s technology industry with total deals worth $3.76bn, while M&A and private equity deals totalled $804.37m and $40m respectively.

China technology industry deals in January 2021: Top deals

The top five technology industry deals accounted for 47.6% of the overall value during January 2021.

The combined value of the top five technology deals stood at $2.19bn, against the overall value of $4.61bn recorded for the month.

The top five technology industry deals of January 2021 tracked by GlobalData were:

1) Beijing Xicheng Jinrui Equity Investment Fund Management, Boyu Capital Consultancy, China Development Bank, China ReformLtd, CSC Financial, FountainVest Partners, Goldman Sachs Asia Securities, Haitong Securities, HOPU Jinghua (Beijing) Investment ManagementLimited, JIC TechnologyLimited, JinYi Capital, National Manufacturing Transformation and Upgrading Fund, Primavera Capital Group and Sequoia Capital China’s $700m venture financing of Beijing Wusi Chuangxiang Technology

2) The $432.54m acquisition of Shenzhen Lanren Online Technology Co by Tencent Music Entertainment Group

3) Aspex, Baillie Gifford, China Securities, Citic Private Equity Funds Management, CloudAlpha Tech Fund, Contemporary Amperex Technology, Hermitage Capital HK, Neumann Advisors, ORIX, SDHS Capital, YF Capital and Yuantai Changqing Fund’s $400m venture financing of Horizon Robotics

4) The $360m venture financing deal with Beijing Calorie Technology by Bertelsmann Asia Investments, Coatue Management, GGV Capital, Hillhouse Capital Group, Jeneration Capital, Morningside Venture Capital Group, SoftBank Vision Fund and Tencent Holdings

5) CCB International Holdings, Guotai Junan International, IDG Capital and Russia-China Investment Fund’s venture financing with Didi Chuxing for $300m.

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.

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