BEIJING, Feb. 25 (Xinhua) -- Mergers and acquisitions (M&A) in China's real estate industry is expected to surge in 2020, as the outbreak of the novel coronavirus pneumonia (COVID-2019) has disrupted the development of the sector and intensified industrial reshuffle, reported the Xinhua-run Economic Information Daily citing an analyst with China Index Academy (CIA).
The number of M&A deals made by domestic real estate developers as buyers in 2019 rose 14.7 percent year on year to 333 cases, involving total transaction amount of 296.06 billion yuan, which showed an increase of 31.6 percent year on year, according to a report recently released by CIA.
The regulation and control of the real estate market in China continued to tighten last year. Against this backdrop, M&A became an effective way for realtors to acquire land.
The recent outbreak of COVID-2019 has further put housing enterprises under pressure in terms of capital chain, noted the analyst.
He added that this year, some small and medium-sized real estate firms with insufficient capital and weak marketing capability may transform their business or be acquired by peers, while leading developers with abundant funds would become the main force of M&A and enjoy more industry resources. (Edited by Su Dan, silviasu07@163.com)
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