Mergers and acquisitions (M&As) accounted for one-third of China's overseas direct investment in the first half of this year as more firms set their sights on markets abroad, the government said.

China's overseas M&As reached nearly US$12 billion, compared with the country's non-financial direct outbound investment total of $35 billion in the January-June period, the Chinese Ministry of Commerce said.

The high proportion of the M&As was attributed to a number of big acquisitions.

Sinopec Group purchased shale gas assets owned by U.S. company Chesapeake Energy Corp. for $2.44 billion, while Sany Heavy Industry Co. bought German machinery maker Putzmeister Holding Co. for 324 million euros (US$394 million), according to the Ministry of Commerce.

Market watchers say the increase in China's overseas investment came as Chinese companies scooped up cash-strapped foreign companies, taking advantage of the global economic weakness.

Since the outbreak of the international financial crisis in 2008, Chinese companies' appetite for international acquisition has been growing.

PricewaterhouseCoopers (PwC) said earlier in a report that the total number and sum of overseas M&As made by Chinese enterprises reached a record high in 2011, standing at 207 and $42.9 billion each.

The consulting firm anticipated that the trend will be more intense in 2012 with many cases targeting first-class global brands.  

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