The number of overseas deals initiated by China’s private companies since 2004 has steadily increased, with interest in them at the highest levels I have ever seen—238 private company overseas deals valued at US$24.3 billion in the first three quarters of 2013. That compares with Dealogic’s report of 45 overseas deals valued at US$3.7 billion in 2004.

Many private companies believe they have limited room for growth in the Chinese market. A platform outside China can therefore deliver long-term benefits to them.

Once the political transition is completed and the “wait and see” approach begins to lessen, investment transactions by state-owned enterprises and private companies are likely to increase even further.