China’s mergers and acquisitions (M&A) turnover dropped 10% year-to-date to USD297bn, extending a three-year decline, UBS said. However, the Swiss bank expects at least a 15% rise in trading volume next year, as lower interest rates draw more private equity funds to Hong Kong privatisation deals. Despite this projected rebound, annual turnover is set to remain below the USD700bn average recorded from 2015 to 2021. UBS forecasts 2024 M&A turnover to fall 15% year-on-year to USD325bn, marking a 10-year low. Deals exceeding USD10bn are less frequent than during China’s boom years. High financing costs and tighter foreign regulatory scrutiny are curbing Chinese companies’ appetite for large cross-border transactions. Subdued volumes are expected for several more years.