Data from LSEG reveals that the total value of merger and acquisition transactions involving Mainland China reached $153.5 billion in the first half of 2026. This figure represents a 33.6% year-on-year decline, though it marks a 1.2% increase from the previous quarter.

A total of 3,244 deals were announced during the same period, which is a 39.6% increase compared to the previous year. However, this number shows a 12.4% decrease from the prior quarter.

Breaking down the figures, outbound M&A by Chinese companies totaled $15.7 billion, up 45.0% year-on-year. Inbound M&A, where foreign companies acquired Chinese firms, amounted to $11.4 billion, a 33.4% increase. Domestic M&A activity within Mainland China itself reached $122.7 billion, experiencing a 39.2% year-on-year drop.

Key Industry Trends

The high-tech sector remained the most active area for M&A in the region, with total deal value hitting $44.1 billion. This accounted for 28.71% of the overall market and represented a significant 60.9% year-on-year growth.

The industrial sector ranked second, contributing 20.87% of the total deal value and showing a 45.3% increase. The materials sector placed third, with deals worth $26.9 billion, making up a 17.51% market share but reflecting a 23.5% decline.

Major Deals and Advisors

The largest single transaction involving the region in the first half of 2026 was the acquisition of Shanghai Moonton Technology Co., Ltd. by Savvy Games Group for $6 billion in cash.

In the financial advisor rankings by deal value, CITIC Securities led with $10.1 billion in related transactions and a 6.61% market share. Goldman Sachs followed with a 5.24% share, and China International Capital Corporation (CICC) took third place with 5.04%.

Ranked by the number of deals, CITIC Securities, CICC, and Baker Tilly International were the top three advisors.

For legal advisors, Jia Yuan Law Firm, Fangda Partners, and Global Law Office were the top three by announced deal value. When measured by the number of transactions, the leading firms were Fangda Partners, AllBright Law Offices, and Zhong Lun Law Firm.