Investment And M&A

China's consumer sector entered a period of transition in 2025, marked by shifting consumption patterns, evolving regulatory expectations, and ongoing portfolio realignments across the industry. Against this backdrop, market participants have been exploring new growth areas and adapting their M&A strategies to navigate changing market conditions. While overall liquidity remained tight and some investors were cautious, the sector has continued to offer selective opportunities, particularly in segments aligned with long‑term consumption trends.

Policies & regulations

The Action Plan for Stabilizing Foreign Investment released in February 2025 introduced several measures to facilitate M&A transactions for foreign investors, including the plan to revise the rules governing foreign acquisitions of domestic enterprises, and to further streamline procedures and lower thresholds for cross-border share swaps. These initiatives are expected to make it easier and more