The Hong Kong Special Administrative Region (HKSAR) has become the most popular destination for Chinese mainland enterprises seeking overseas merger and acquisition (M&A) deals in 2021, while the US led in foreign investment deals in the Chinese mainland market, according to a new report.

The Hurun China Cross-Border M&A Report 2021 showed that while the overall number of overseas M&A deals made by Chinese mainland firms dropped significantly amid the Covid-19 pandemic, there are also positive trends and prospects for growth in overseas M&A deals going forward.