China's M&A market is expected to experience a decline in transaction volume this year, reaching its lowest level in a decade. The decrease is attributed to factors such as falling interest rates, privatisations, and foreign firms divesting their Chinese operations.

However, UBS predicts a rebound in 2025, with a projected 15% increase in transaction volume. Lower interest rates are expected to stimulate private equity activity and encourage participation in the privatisation of listed companies, particularly in Hong Kong.

Taking companies private has become a popular trend in Asia due to challenging market conditions.