UBS' Lo Says China M&A Market Very Busy, Robust

The transcript discusses Costco's rise as a leader in the shipping industry, highlighting its strategic moves and the impact of China's restructuring efforts. It explores the challenges of obtaining regulatory approvals for international deals, particularly for Chinese companies, and the effects of capital controls. Despite a perceived drop in outbound volume, China's M&A market remains robust, with significant billion-dollar deals. The discussion also touches on the potential for new guidelines from the National Congress that could influence future capital controls.

What is the main reason for the merger between the two shipping companies?

• To reduce operational costs

• To dominate the European market

• To enter the airline industry

• To strengthen their position in the Pacific and global shipping routes

How has Costco Shipping evolved to become a world leader?

• By reducing its fleet size

• By focusing solely on domestic markets

• Through a series of domestic restructuring and asset combinations

• By acquiring smaller shipping companies

What is a significant factor that might help the merger gain regulatory approval?

• The companies' focus on environmental sustainability

• The merger's potential to create job opportunities

• Their membership in the same shipping alliance

• The companies' involvement in different industries

What has been the effect of capital controls on Chinese outbound M&A activities?

• A shift towards domestic investments only

• Increased discipline and strategic focus in deal-making

• A significant drop in the number of billion-dollar deals

• A complete halt in all outbound deals

What is the expectation regarding future regulatory measures after the 19th National Congress?

• Complete removal of capital controls

• Introduction of new trade barriers

• Stricter capital controls

• Potential relaxation of current measures