China Outbound M&A Seen Driving Rebound in Loans This Year (1)

Offshore loans in the Greater China region are expected to climb this year, driven by an increase in mergers and acquisitions, after falling to their lowest level in five years.

The coronavirus pandemic weighed on demand for loans in 2020, with the value of Greater China offshore club and syndicated loans dropping 31% to $96.4 billion from a year earlier. China offshore loans, which traditionally comprise the bulk of Greater China volumes, declined 40% to $45.2 billion.

“I am cautiously optimistic that loan volumes in Greater China will pick up,” said John Corrin, head of corporate finance, international, at ...