China’s flourishing appetite for acquiring overseas companies has been dealt a sharp setback as regulatory fears hindered two potential takeovers and highlighted the obstacles to striking deals with Chinese companies.

In the space of a day, two separate takeovers involving Fosun International, one of China’s most acquisitive private conglomerates, and state-backed China Resources have collapsed — with the latter being spurned despite it offering a higher bid for its US target.

These challenges undermine what is expected to be a driving force in dealmaking in 2016, with Chinese companies already on course to shatter a record for outbound mergers and acquisitions. So far this year, the value of Chinese mergers and acquisitions overseas has topped $75bn, more than any other year on record except for 2015, when a total of $112bn in deals was attempted, according to Dealogic.