Outbound Chinese investment rose to a new high in the April-June quarter, a gauge by a private equity fund showed Tuesday, as the economy weakens and companies seek opportunities abroad.

The A Capital Dragon Index hit 2,125 points in the second quarter of this year as overseas investments jumped 67 percent from the same period the year before, A Capital said in a release.

The second-quarter increase surpassed the previous high of 2,069 points hit at the end of 2010, A Capital said.  It identified Europe as a key destination for Chinese companies, with investments there doubling in the second quarter from the year before.

It said the second quarter was boosted by China's Sany Heavy Industry's takeover of German family-owned engineering firm Putzmeister.  "Europe remains the leading destination quarter after quarter, confirming the strong complementarity and quality of European firms for Chinese investors," A Capital said.

Outbound direct investment rose 8.5 percent last year from 2010, when it saw an annual increase of around 22 percent, according to Chinese government data.  A Capital compiles its index using its own research as well as data from the Chinese government, the United Nations and analysis firm Mergermarket.

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