China Mergers & Acquisitions Review FULL YEAR 2020 | FINANCIAL & LEGAL ADVISORS China Mergers & Acquisitions Review Full Year 2020 | Financial & Legal Advisors Deals Intelligence China Announced M&A China Announced M&A - Macro Industry Mergers & acquisitions (M&A) involving China totaled US$581.3 billion in the full year of 2020, up $900 8,000 30.1% from a year ago, making it the highest full year period since 2017. Number of announced Deal Value of Full Year (US$bil) deals fell to a two-year low, dropping 1.1% year-on-year. During the fourth quarter of 2020, overall # of Deals, Full Year China M&A picked up activity and reached US$167.6 billion, witnessing a 26.4% decrease from the $800 7,000 third quarter of 2020. $120.6 $700 583 Chinese outbound acquisitions totaled US$37.1 billion, down 15.1% compared to 2019. Chinese 6,000 $170.8 acquisitions along Belt & Road nations saw 113 deals worth US$8.3 billion in 2020, down 33.7% from a year ago, and accounted for 22.3% of the total Chinese outbound acquisitions. $600 5,000 Energy and Power 1,558 Foreign firms acquiring Chinese companies amounted to US$44.8 billion in the full year of 2020, a 2,886 High Technology $500 4.3% increase from the same period in 2019. This is the highest full year period for China inbound Industrials M&A activity in terms of value since 2018. Domestic activity stood at US$478.5 billion, a 38.8% 4,000 Financials increase from the comparative period of 2019, a 2.9% increase in deal count as well. $400 Real Estate 3,000 $97.4 Deal making activity involving China targeted the Energy and Power sector which captured 20.8% Others $300 market share and totaled US$120.6 billion, China Oil & Gas Pipeline Network Corp agreed to acquire $48.0 1,112 the entire share capital of PetroChina Co Ltd-Pipeline assets for US$49.1 billion in cash. The deal is 2,000 476 the biggest China M&A transaction in 2020. High Technology followed in second place with 16.8% $200 581 market share with US$97.4 billion, an 83.8% increase from 2019. Industrials was in the third place $57.6 with the market share of 15.0%. $86.9 $100 1,000 China International Capital Co led the any China involvement announced M&A league table in 2020, with 26.5% market share and US$153.9 billion in related deal value. Goldman Sachs & Co and UBS $0 - Outer Ring: Value (US$bil) Inner Ring: # of Deals were followed in second and third place, with the market shares of 12.5% and 10.2% respectively. 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Top China Announced M&A Transactions China Announced Cross-Border M&A China Announced Outbound M&A - Macro Industry Rank Target Target Value Acquiror Acquiror $100 100% Date Name Region US$mil Name Region Inbound (US$bil) PetroChina Co-Pipeline Outbound (US$bil) 07/23/20 China 49,143.7 China Oil & Gas Pipeline China assets $90 Outbound as % of Cross-Border 90% China Gezhouba Group China Energy 10/27/20 China 14,440.6 China Co Ltd Engineering Corp $80 80% $8.4 07/23/20 Sinopec-Pipeline asts China 9,775.5 China Oil & Gas Pipeline China 77 $70 70% Sinopec Natural-Pipeline $11.8 07/23/20 China 9,467.0 China Oil & Gas Pipeline China asts $60 60% High Technology 07/23/20 China Oil & Gas Pipeline China 7,858.5 Investor Group China 16 Retail 04/02/20 58.com Inc China 6,656.7 Quantum Bloom Grp Ltd China $50 50% Energy and Power 26 Liaoning Zhongwang Grp 03/21/20 China 6,579.7 CRED Holding Co Ltd China 242 Media and Entertainment Co Ltd $40 40% 17 Bank of Jinzhou-Credit Beijing Chengfang Huida Financials 04/03/20 China 6,354.1 China assets Entrp $30 30% Others $5.9 PetroChina Beijing 12/22/20 China 6,245.3 China Oil & Gas Pipeline China Natural 65 $20 20% GCL Investment United United 12/09/20 6,225.0 Imola Merger Corp $3.3 Management Inc States States Sinopec Mktg Co- $10 10% 07/23/20 China 5,681.5 China Oil & Gas Pipeline China Pipeline asts $3.6 $4.0 China Everbright Bank China Everbright Group 05/23/20 China 5,393.8 China $0 0% Co Ltd Ltd 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Outer Ring: Value (US$bil) 10/12/20 DouYu Intl Hldg Ltd China 5,279.2 HUYA Inc China 2015 2016 2017 2018 2019 2020 Inner Ring: # of Deals www.refinitiv.com/dealsintelligence China Mergers & Acquisitions Review Full Year 2020 | Financial Advisors Any Chinese Any Chinese Any Chinese Involvement Announced Involvement Announced AD56 YoY Change ($) 30% QoQ Change ($) -26% Involvement Completed AF63 YoY Change ($) 12% QoQ Change ($) -45% Fairness Opinion YoY Change ($) 30% QoQ Change ($) -26% Rank Rank Value Market Mkt. # of Rank Rank Value Market Mkt. # of Rank Rank Value Market Mkt. # of Financial Advisor Financial Advisor Financial Advisor 2020 2019 US$mil Share Sh. Chg Deals 2020 2019 US$mil Share Sh. Chg Deals 2020 2019 US$mil Share Sh. Chg Deals China International Capital Co 1 2 153,903.5 26.5 17.7 84 China International Capital Co 1 3 114,825.7 29.9 23.6 54 CITIC 1 1 14,481.7 2.5 -4.0 56 Goldman Sachs & Co 2 6 72,766.3 12.5 9.7 24 Goldman Sachs & Co 2 4 58,440.7 15.2 9.6 13 China International Capital Co 2 11 8,103.6 1.4 0.6 13 UBS 3 22 59,386.8 10.2 9.1 15 China Securities Co Ltd 3 5 57,002.6 14.9 9.8 22 Houlihan Lokey 3 32 7,389.3 1.3 1.2 7 China Securities Co Ltd 4 5 54,017.4 9.3 4.8 17 UBS 4 19 56,373.2 14.7 12.9 8 Morgan Stanley Huaxin Securities 4 21 7,341.2 1.3 0.8 3 Morgan Stanley Huaxin Securities 5 10 44,134.4 7.6 5.3 15 CITIC 5 1 46,262.8 12.1 -4.3 68 Lianchu Securities Co Ltd 5 - 6,775.9 1.2 1.2 4 Guotai Junan Securities 6 21 32,953.5 5.7 4.6 30 Morgan Stanley Huaxin Securities 6 9 33,838.7 8.8 6.0 10 Minsheng Securities Co Ltd 6 60 6,705.5 1.2 1.2 4 CITIC 7 1 22,794.5 3.9 -9.7 101 Guotai Junan Securities 7 13 29,387.3 7.7 5.3 26 Guotai Junan Securities 7 9 6,695.3 1.2 0.2 20 JP Morgan 8 16 21,398.6 3.7 2.3 12 Huatai Securities Co Ltd 8 6 16,878.4 4.4 -0.4 27 Duff & Phelps 8 7 6,084.1 1.1 -0.1 11 Citi 9 18 18,428.5 3.2 1.9 17 BofA Securities Inc 9 40 12,177.3 3.2 2.6 10 Citi 9 - 5,279.2 0.9 0.9 1 Industrial & Comm Bank China 10 4 16,060.3 2.8 -2.0 92 Industrial & Comm Bank China 10 2 10,335.0 2.7 -8.7 100 Zheshang Securities Co Ltd 10 55 5,103.5 0.9 0.9 5 HSBC Holdings PLC 11 14 11,826.0 2.0 0.4 8 Somerley 11 12 9,494.5 2.5 0.0 21 Huatai Securities Co Ltd 11 3 4,455.1 0.8 -2.7 17 Somerley 12 7 10,665.5 1.8 -0.9 25 Shenwan Hongyuan (H.K.) Ltd 12 - 9,104.1 2.4 2.4 3 Somerley 12 6 4,136.9 0.7 -0.7 8 Houlihan Lokey 13 56 7,389.3 1.3 1.2 10 Shenwan Hongyuan Securities Co 13 30 8,357.4 2.2 1.2 14 Ping An Securities Ltd 13 37 3,044.5 0.5 0.4 2 Lianchu Securities Co Ltd 14 181* 6,775.9 1.2 1.2 4 JP Morgan 14 11 8,355.9 2.2 -0.3 10 China Securities Co Ltd 14 2 3,016.5 0.5 -3.7 9 Minsheng Securities Co Ltd 15 122 6,705.5 1.2 1.2 4 Citi 15 8 8,129.5 2.1 -0.9 9 Donvex Capital Ltd 15 64 2,740.6 0.5 0.5 2 Duff & Phelps 16 19 6,084.1 1.1 -0.1 11 Houlihan Lokey 16 179* 7,049.2 1.8 1.8 9 GF Securities 16 66 1,964.9 0.3 0.3 2 Zheshang Securities Co Ltd 17 82 5,104.7 0.9 0.8 7 Guosen Securities Co Ltd 17 23 6,413.6 1.7 0.3 5 Optima Capital Ltd 17 - 1,619.2 0.3 0.3 4 Huatai Securities Co Ltd 18 3 4,846.6 0.8 -4.4 20 Lazard 18 26 6,199.7 1.6 0.5 9 Gram Capital 18 17 1,617.9 0.3 -0.3 5 BNP Paribas SA 19 45 4,755.3 0.8 0.5 8 HSBC Holdings PLC 19 14 5,938.2 1.6 -0.5 5 Tianfeng Securities Co Ltd 19 5 1,285.7 0.2 -1.2 7 Jefferies LLC 20 86 4,695.2 0.8 0.7 8 Changjiang Securities Co Ltd 20 68 1,041.7 0.2 0.2 4 Industry Total 581,251.4 100.0 7,196 Industry Total 383,769.4 100.0 3,893 Industry Total 581,251.4 100.0 7,196 China Outbound Announced M&A YoY Change ($) -15% QoQ Change ($) 54% China Inbound Announced M&A YoY Change ($) 4% QoQ Change ($) -17% China Domestic Announced M&A YoY Change ($) 39% QoQ Change ($) -33% Rank Rank Value Market Mkt.