(Yicai Global) Jan. 27 -- Chinese companies carried out USD733.8 billion worth of mergers and acquisitions last year, a new high since 2016, amid state-owned firms' strong support but fewer overseas deals.

The value of all M&A deals rose by 30 percent from 2019 but that of foreign mergers dropped to the lowest in 10 years, the National Business Daily reported, citing a report that consulting firm PricewaterhouseCoopers released today.

China's M&A market may continue to focus on domestic transactions this year, PwC projects. Deals may increase, driven by private equity funds and financial investors, including state-owned funds. But overseas markets will take time to recover so activity may not surpass the levels of 2019, it added.

The domestic boom was driven by favorable policies, SOEs and market demand for liquidity, as well as large-scale corporate privatization, according to the report.

But foreign markets were becoming harder to reach amid the Covid-19 pandemic. The value of overseas M&A transactions fell to USD42 billion, the smallest sum since 2010. The number of such deals dropped to 403, the lowest since 2015.

Private equity fund M&As reached a historic high of USD332.4 billion last year. These types of funds were very active in the fields of high-tech, industrial products, and consumer goods while the trend is consistent with the country's stimulus policies.

Editor: Emmi Laine