Despite recent controls on capital outflows, Chinese healthcare and life science companies will continue to find ample opportunities for mergers and acquisitions (M&As) abroad, according to a report by Deloitte Touche Tohmatsu. The recent slowdown in health-related M&A notwithstanding, Chinese overseas investments will accelerate, especially in medical equipment and related services, given the inadequate research and development capabilities at home, expectations of the renminbi’s depreciation, and overvalued domestic M&A targets, according to the report. Simon Li, Counselor at Anjie Law, said controls on capital outflows are meant to rein in irrational or speculative overseas investments in real estate, hotels, entertainment and sports clubs. Such policies won’t affect the healthcare industry much. The Chinese government is keen on implementing the “Healthy China 2030” program, he said. “Through overseas investments, Chinese companies can rapidly obtain sophisticated technology and equipment, thus improving the level of China’s medical industry,” Li said. Overseas investments by Chinese companies in the medical sector fell to just 10 deals worth USD1 billion in the fourth quarter of last year, and to nine deals worth USD1.26 billion in the first quarter of this year. In 2016, 29 Chinese pharmaceutical companies clinched outbound M&A deals worth USD56.67 billion, significantly surpassing USD34.42 billion in 2015.