China's mergers and acquisitions market rebounded strongly in the first half of 2026, with 7,316 transactions, up nearly 30% from a year earlier and the highest level on record, according to PwC Hong Kong's China M&A 2026 Mid-Year Review and Outlook report on Wednesday.
Total deal value rose 56% year over year to $241.6 billion, the strongest first-half performance since 2023, driven by a recovery in capital markets and supportive policies.
Financial buyers led the rebound, with deal volume and value rising nearly 50% and 85%, respectively.
High-tech sectors, particularly AI, data storage, and semiconductors, remained key targets, with 10 of 27 mega-deals valued at more than $1 billion concentrated in the sector.
PwC expects M&A momentum to remain strong in the second half, with hard-tech consolidation, SOE reform, and secondary institutional sales among the key drivers of structural growth.
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