HONG KONG— Mergers and acquisitions targeting Hong Kong financial firms have slumped this year, with insurance sector deals particularly hard hit, as China’s moves to tighten capital controls and crack down on corporate debt have driven mainland buyers away.
Hong Kong’s financial institutions have long been considered juicy targets, helped by the city’s wealth as well as its tight currency peg to the U.S. dollar. For Chinese financial firms, the city has also typically been the first step in realizing their overseas ambitions due to its proximity to home.
