After pushing the value of the Asia-Pacific's outbound business acquisitions past the $1 trillion mark this year, China's corporate ventures are expected to make even more merger and acquisition (M&A) deals abroad in 2016 in an effort to sidestep a sluggish domestic economy, according to Reuters.

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The economic slowdown in China did not stop big business in the world's most populous country from making several high-profile M&A agreements over the past 12 months. 

The total volume of cross border M&A deals worldwide was at $1 trillion three months ago. The value of the Asia-Pacific region's M&A deals now stands at $1.2 trillion, according to a special Thomson Reuters report. China accounts for much of the Asia-Pacific's outbound acquisitions. 

One of the ways companies keep their shareholders happy is by paying bigger dividends.  This is typically done through acquisitions that boost revenues. When there are no more profitable acquisitions to be made on the domestic front, companies with sizable war chests look overseas for promising M&A agreements.

In October, the financial software company Dealogic issued a report indicating that businesses in the Asia-Pacific region had already secured M&A deals worth nearly $771 billion between January and September this year.  China's corporate ventures contributed nearly half of those deals, buying overseas assets worth over $384 billion in the first nine months of 2015 alone.

Reuters says China's mammoth corporations will be looking to make even more overseas acquisitions next year to keep their shareholders happy, with outbound investments driven mainly by a need for cutting edge manufacturing technology, environmental issues and a weakening yuan.

Chinese companies are said to be considering a number of high-profile overseas investments for 2016.  Beijing Enterprise Holdings Ltd is said to be going after German waste management company EEW in a deal that is worth around $1.8 billion.

Reports likewise indicate that the state-owned company China National Chemicals Corporation is considering investment opportunities in the European agrochemicals manufacturer Syngenta AG, a company worth more than $35 billion.

Credit Suisse head of Asia Pacific M&A Joseph Gallagher says his company is bracing for a busy year ahead. 

"China is on the move, we are preparing for a busy year for deal making," Gallagher told Reuters. "Chinese outbound activity is set to pick up with a focus on the semi-conductor, power and financial sectors."

Tagsmergers, acquisitions, assets