(Yicai) May 9 -- International mergers and acquisitions by Chinese companies soared 77 percent by value in the first quarter to USD8.9 billion, with a significant jump in large transactions, according to a new report.

M&As in the technology, media, and telecommunications, consumer goods, and real estate, hospitality, and construction industries made up 69 percent of the total, accounting firm Ernst & Young Global said in a report released yesterday.

Overseas M&As by Chinese firms in the TMT sector reached a near ten-year high of USD3.5 billion, up 144 percent, highlighting the accelerating trend of consolidation in the high-tech industry. Europe was the most popular region, making up over 70 percent of the total, a stark contrast from a year ago when Asia accounted for around 70 percent.

The number of Chinese companies' international M&As increased 7 percent to 108 in the three months ended March 31 from a year earlier, with the TMT, advanced manufacturing and transportation, and financial services sectors accounting for 54 percent of the total.

In the healthcare and life sciences sector, Chinese firms' M&As were mainly in the United States, which accounted for over 60 percent of the relevant value. In countries along the Belt and Road Initiative, around 75 percent of the value was made up by companies in the consumer goods sector, the oil and gas industry, and the mining and metals sector.

Asia countries were the primary destination for Chinese companies' overseas M&A, with 38 transactions, which also soared 130 percent by value to USD3.5 billion. European M&As rose 45 percent to USD3 billion, while those in North America dropped 4 percent to USD800 million, with the number of transactions falling 11 percent.

France became the largest foreign destination by value for Chinese enterprises' M&As for the first time in five years at USD1.7 billion, followed by Japan at USD1.5 billion and Brazil at USD1.2 billion. By number, the US remained the top destination with 16 M&As, unchanged from a year ago.

China's total outward direct investment rose 6.2 percent to USD40.9 billion last quarter from a year earlier. The non-financial outward direct investment climbed 4.4 percent to USD35.7 billion.

The trend of Chinese companies expanding overseas is unstoppable, with firms likely to accelerate their transition towards high-end manufacturing and move upstream in the international value chain, transforming into "global innovation hubs," according to the report. Chinese firms may enter a new phase of globalization characterized by greater resilience.

Editor: Martin Kadiev