--- title: "Chinese Firms Resume Global Dealmaking, As A Top Lender Stalls" description: "Chinese firms, led by Anta and TCL, are resuming foreign acquisitions to counter a sluggish domestic market. Anta has acquired a 29% stake in Puma, while TCL has taken over Sony's home entertainment d" type: "news" locale: "en" url: "https://longbridge.com/en/news/274824404.md" published_at: "2026-02-04T13:46:28.000Z" --- # Chinese Firms Resume Global Dealmaking, As A Top Lender Stalls > Chinese firms, led by Anta and TCL, are resuming foreign acquisitions to counter a sluggish domestic market. Anta has acquired a 29% stake in Puma, while TCL has taken over Sony's home entertainment division. This trend reflects a strategic shift as companies seek growth abroad amid a weak consumer economy. Conversely, China Merchants Bank is adopting a cautious approach, reporting minimal profit growth and a low non-performing loan ratio, indicating a focus on loan quality over aggressive expansion. These developments highlight the diverging paths of Chinese corporations in response to economic challenges. **Key Takeaways:** - Anta and TCL are leading a new wave of foreign acquisitions to offset a soft domestic consumer market - China Merchants Bank's profit growth has flattened as it prioritizes loan quality over aggressive expansion in a low interest rate environmen ***image credit: Bamboo Works*** We are witnessing two diverging narratives in China's corporate landscape that, upon closer inspection, stem from the same root cause: a sluggish post-Covid economy. On one front, major Chinese consumer brands are looking outward, resuming a trend of purchasing foreign assets to secure growth that's currently hard to find at home. On the other, the nation's banking sector — represented by its most commercially oriented player — is turning inward, tapping the brakes on growth to navigate a landscape of squeezed margins and cautious borrowers. We see these trends crystallized in recent moves by **TCL** (1070.HK) and **Anta Sports** (2020.HK), as well as the latest financial results from **China Merchants Bank** (3968.HK; 600036.SH). While one sector is seeking to buy its way into new markets, the other is hunkering down to weather the domestic storm. **A return to global shopping** The first trend marks a resurgence of Chinese companies acquiring foreign brands, a strategy that was hot in the first decade of the 21st century — epitomized by **Lenovo's** (0992.HK) purchase of the PC business of **IBM** — but had largely disappeared over the last decade after mixed results. Two significant deals have brought this strategy back into focus. First, TV giant TCL has taken over the home entertainment division of **Sony** (6758.T), a Japanese legend that has lost some of its luster. The two sides announced a joint venture to manufacture and sell products under both the Sony and Bravia brands. Second, up-and-coming sportswear giant Anta has purchased a 29% stake in Germany's **Puma** (PUM.DE) from the Pinault family, becoming the brand's largest single shareholder. We believe these acquisitions are driven by strategic necessity. The Pinault family's portfolio has underperformed recently, and Puma has consistently trailed its German competitor **Adidas** (ADS.DE) and American giant **Nike** (NKE.US). Furthermore, new challengers are rising, such as **On** (ONON.US), which boasts the backing of former tennis world number one Roger Federer. However, the primary driver for the Chinese buyers appears to be the domestic environment. As we all know, the consumer economy in China is not performing extremely well. We are now in the fourth year post-Covid, yet the expected substantial bounce-back has not materialized. Despite government announcements regarding measures to improve consumption, the sector remains subdued. For companies like Anta, which has done reasonably well with past foreign acquisitions, buying into a global brand is a way to push for growth and revenues overseas when Chinese consumers are unwilling to spend. We expect this to be the beginning of a bandwagon effect. In China, when a business move looks economically viable, imitators often follow. We have already heard rumors of names like **Luckin** (OTC:LKNCY) potentially looking at assets like Costa Coffee. If the domestic market remains soft, this new wave of outbound M&A is likely just getting started. **A bellwether bank turns cautious** While consumer brands look abroad, the domestic financial reality is starkly illustrated by the latest figures from China Merchants Bank. Generally considered one of China's best-run lenders and a barometer for the sector, the bank is based in Shenzhen and is far more commercial than its state-owned peers. The bank reported that profit growth came to a virtual standstill last year, rising just 1.2%. Operating income was even flatter, rising by a scant 0.01%. Most telling was that net interest income rose just 2%, lagging well behind a 5.4% rise in its loan book. This discrepancy highlights how the bank's interest margin is being squeezed by the low-interest-rate environment — a policy the government likely wants to maintain to stimulate the economy. We view these numbers as a sign of prudent management rather than failure. The bank appears to be navigating uncertain times by being extremely cautious about which new borrowers it brings on board. Expanding the client base too aggressively in this environment could lower the quality of its loan book. Remarkably, the bank's non-performing loan (NPL) ratio remained below 1%. While we often take the NPL ratios of China's big state-owned banks with a grain of salt — viewing them as "GDP banks" that follow political directives and may hesitate to report bad news — we place more trust in China Merchants Bank. Its low NPL ratio likely reflects a strategic decision to limit exposure rather than statistical manipulation. However, it's worth noting that expanding a loan portfolio can artificially depress NPL ratios in the short term, so time will tell if these figures hold. Ultimately, both the aggressive acquisitions by Anta and TCL and the defensive posture by China Merchants Bank tell the same story: China's domestic economy is sputtering, and companies are adapting their strategies — either by leaving the country to find sales or tightening their belts to survive the squeeze. ***Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.*** ### Related Stocks - [6758.JP - Sony Group Corporation](https://longbridge.com/en/quote/6758.JP.md) - [000100.CN - TCL TECH.](https://longbridge.com/en/quote/000100.CN.md) - [516210.CN - Huaan CSI Banks ETF](https://longbridge.com/en/quote/516210.CN.md) - [03968.HK - CM BANK](https://longbridge.com/en/quote/03968.HK.md) - [02020.HK - ANTA SPORTS](https://longbridge.com/en/quote/02020.HK.md) - [600036.CN - China Merchants Bank](https://longbridge.com/en/quote/600036.CN.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | 12:15 ETANTA OPENS FIRST U.S. FLAGSHIP STORE IN BEVERLY HILLS | ANTA, a leading global sportswear company, is set to open its first U.S. flagship store in Beverly Hills on February 13t | [Link](https://longbridge.com/en/news/274690780.md) | | CMBC International Reaffirms Their Buy Rating on ANTA Sports Products (ANPDF) | CMBC International has reaffirmed a Buy rating on ANTA Sports Products (ANPDF) with a price target of HK$98.00, while th | [Link](https://longbridge.com/en/news/273475046.md) | | StanChart Books Higher FY25 Profit, Operating Income | StanChart Books Higher FY25 Profit, Operating Income | [Link](https://longbridge.com/en/news/276690756.md) | | Sony to Shut Down PlayStation Subsidiary Bluepoint Games in March | Sony to Shut Down PlayStation Subsidiary Bluepoint Games in March | [Link](https://longbridge.com/en/news/276373045.md) | | Standard Chartered FY25 Profit Climbs, Net Interest Income Down | Standard Chartered Plc reported a profit increase in fiscal 2025, with profit before taxation rising to $6.96 billion fr | [Link](https://longbridge.com/en/news/276689363.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.