Ben Cavender

China’s financial authorities are cracking down on outbound deals, but not all deals are off-limits, says business analyst Ben Cavender. Especially smaller deals seem to avoid political scrutiny, he tells CNBC.

CNBC:

So far this year, about 70 percent of China’s outbound deals have been valued at $1 billion or less, according to Dealogic data. Experts said they expect the trend of smaller acquisitions to continue.

That’s because with larger acquisitions, “you start getting questions on national security … and overall stability and growth of the Chinese economy, so there’s a lot more scrutiny over large, marquee deals,” said Benjamin Cavender, principal at consulting firm China Market Research.

But “when you’re talking about small, medium enterprises, there’s a little less pressure — the government doesn’t see that as having any way to shape the economy, or cause issues with policy,” he said.

More at CNBC.

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