Overseas Decision Makers Distrust SOEs in M&A Deals, Survey Shows

(Beijing) — China's state-owned enterprises (SOEs) are the least-trusted by foreign decision makers in overseas mergers and acquisition (M&A) deals, but the skepticism drops dramatically if the opinion leader has a better understanding of the country, a recent survey found.

More than half of the 1,500 overseas decision makers canvassed said they distrust SOEs due to shortcomings in governance and social responsibility, according to the report by consulting firm Brunswick. The respondents were from firms in the United States, the United Kingdom and Germany, the top target markets for Chinese buyers.