The document reports on the growth trends of China's outbound mergers and acquisitions (M&A) in 2016, highlighting an increase in both the number of deals and their total value. It outlines the sectors that are most sought after for investment, including technology, healthcare, automotive, energy, and infrastructure, in alignment with China's 5-year plans. Key rationales for these investments include acquiring technology, market value, and financial returns.

1. CHINA OUTBOUD M&A
TRENDS & INSIGHTS
November 2016

2. 198 206 191 200
272
382
671
38.8 42.5
60.3
50.6 55.7
67.4
164.3
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$20
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0
100
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300
400
500
600
700
800
2010 2011 2012 2013 2014 2015 2016 Q1-Q3
Billions
China Outbound M&A Statistics
Number of Deals Disclosed Deal Value
Data Source: Thomson Reuters, analyzed by Seta Capital
Both the number of deals and the total value
of China Outbound M&A continue to grow

3. Technology Brands Know-how
Market Value Management Foreign Market Financial Return
The rationales behind China’s outbound
M&A

4. Most Requested Sectors
(2016)
11th 5-Year Plan
(2005-2010)
12th 5-Year Plan
(2011-2015)
13th 5-Year Plan
(2016-2020)
Environmental Yes Yes Yes
New Energy Yes Yes Yes
Automotive Yes No Yes
Medical and Healthcare* No Yes Yes
Robot (Industrial 4.0) No No Yes
Automation (Industrial 4.0) No No Yes
Real Estate No No No
Food and Beverage Yes No Yes
4
Current Buyer Demand & China’s 5 Year Plan

5. Most Requested Sector –
Industrial
69%
17%
14% Industrial 4.0
• Robotics & Industrial
Automation
• Medical & Bio Automation
• Control Software
Devices &
Machinery
Others
• Packaging
• Military
• Material
Data Source: Seta Capital Investor Survey, Dealogic, Dealglobe, China Merger

6. Most Requested Sector –
Healthcare
Healthcare Services
Medical
Equipment
Others 26%
22%
22%
30%
Pharma
Data Source: Seta Capital Investor Survey, Dealogic, Dealglobe, China Merger

7. Most Requested Sector –
Automotive
Auto & Auto Parts
New Energy Cars
Shipbuilding
Aeronautic
88%
6%
6%
Data Source: Seta Capital Investor Survey, Dealogic, Dealglobe, China Merger

8. Most Requested Sector –
Energy & Resources
High Tech Energy
• Hydropower,
• Li-battery
• Etc.
Traditional
Energy
• Oil
• Gas
• Coal
• Etc.
Clean
Energy
• Wind
• Water
53%29%
18%
Data Source: Seta Capital Investor Survey, Dealogic, Dealglobe, China Merger

9. Most Requested Sector –
Infrastructure
Environmental
ProtectionLogistics
Social
Infrastructure
70%
10%
10%
10%
Construction
Consulting
Data Source: Seta Capital Investor Survey, Dealogic, Dealglobe, China Merger