Tou Ying tracker 2024

Showcasing the strength of Chinese investment in the UK

Source: Grant Thornton UK

Overall, the top 10 companies by turnover accounted for 81% of all revenues generated by Chinese-owned companies in 2023. In 2024 this reduced slightly to 80%. Furthermore, aggregate turnover for the top three companies (Unipec, Sinochem, PetroChina) across both 2023 and 2024 fell by a combined £21 billion (35%), which puts the 15.2% overall decline into more context.

Of the remaining companies in the top 10, Shein was a new entrant with 2023 revenues up 84% on 2022. Contrary to Unipec and PetroChina, CNOOC grew by 76%. Polestar’s revenues were relatively flat after what they described as a challenging year, but TikTok grew 66%.

The top 10 companies by employee numbers in 2024 made up 50% of all employees (50% in 2023). TikTok is now the largest employer, with 8,503 staff reported in the UK, up 21% on 2023.

Sector breakdown (number of companies)

A close look at Chinese M&A trends in the UK

As of 2024, Chinese investment through M&A transactions has shown a significant recovery, with the total number of transactions reaching 37, nearly doubling compared to 2023 (19).

Funded capital deals remain the dominant entryway of Chinese investments into the UK, accounting for 73% of total deal volume (53% in 2023). Volumes were driven largely by funding round investments in UK fintech and biotech. The appetite for acquisitions remains the same at five cases (five in 2023; 12 in 2022).

It's also important to note that this report solely captures Chinese capital's equity investments in the UK and doesn't encompass the significant debt investments made by Chinese capital through Chinese banks in the UK.

Quarterly deal value and volumes

*The data excludes real-estate/JVs/partnerships and greenfield investment

Sources: Zephyr, Orbis, Mergermarket, Refinitiv, Nexis.

Notable Chinese-UK deals between 2021 and 2023

GSR Ventures expands partnership with Fintern Ltd

Chinese venture capital GSR Ventures leads the largest investment in 2024 at £800 million, and alongside other investors continued to invest in a new funding round to a London-based AI-driven Fintech, Abound, owned by Fintern Ltd. The open banking solution company’s Render technology enables companies to use AI to make smarter credit risk decisions and reach more customers.

NetEase increased equity in Build A Rocket Boy

Build A Rocket Boy, a leading independent gaming and entertainment company based in the UK, founded by a former lead developer of Grand Theft Auto, completed a successful fundraising round, securing over USD 110 million in January 2024. NetEase, a notable investor, participated in the Series D fundraising round for Build A Rocket Boy, having previously been involved in the USD 40.8 million Series B investment alongside Galaxy Interactive in 2020.

Sky9 Capital joined the strategic funding into MAR mining

MAR mining, a leading cryptocurrency mining platform, announced the completion of another USD 100 million round of strategic financing. Shanghai-based venture capital Sky9 Capital, along with nine other reputable institutional investors, participated in this round. The funding will be utilised to expedite the implementation and strategic expansion of MAR Mining's decentralised governance and public goods financing technology stack.

How we can help

From 2024 to 2025, China-UK relations have demonstrated resilience and a commitment to constructive engagement amid global uncertainties. The resumption of the UK-China Economic and Financial Dialogue has deepened collaboration in trade, green energy, and technological innovation, contributing to sustainable development.

While differences remain in security and policy, both countries continue to engage in financial services, investment, climate action, global governance, and educational exchanges, fostering stability in bilateral relations. With increasing Chinese investment in the UK and strengthened research partnerships between British and Chinese institutions, the relationship remains dynamic, presenting both challenges and opportunities as both nations pursue mutually beneficial growth and cooperation.

Market uncertainties, including rapid inflation, high interest rates, and higher taxes, mean businesses are facing increasingly complex financial challenges. It's therefore vital that Chinese businesses in the UK stay resilient and explore all options available.

You may face difficult choices, which need to be made quickly, when events don’t unfold as expected for your business, but we can help provide certainty and a clear course of action:

• Debt advisory and restructuring
• Equity valuation
• Option review for shareholders
• Creditor advisory
• Corporate restructuring
• Contingency planning and administrations

Our solutions are tailored to your circumstances, your business, and the sector you operate in.