(Yicai Global) Jan. 24 -- China's mergers and acquisitions are likely to bounce back this year after falling 11 percent from a historical high in 2016, as investors will make more moves overseas.

Policy orientation will become clearer this year and China will invest more money abroad, according to a report published yesterday by PricewaterhouseCoopers. The London-based professional services firm also believes that there will be more inbound investment.

The total value of China's M&As fell to USD671 billion last year as the country sought to cut back on "irrational" overseas investments. Transaction values fell across three types of deal: Chinese companies investing overseas, foreign firms investing in China and financial investments, Pwc said. The number of overseas investments of more than USD1 billion fell to 89 last year from 103 in 2016.

Despite the annual dip in outbound transactions, their worth last year still topped figures for 2014 and 2015 combined. Domestic investment remained strong, rising 14 percent in value terms.

"Deals were down in both volume and value after a booming 2016, but all the signs point to strong growth over the next five years," Guo Wei, transaction services partner at PwC China, told state-owned Economic Information Daily. The figures last year were still the second-highest ever and all key drivers remain in place, he added.