According to A Capital, a leading Euro-China growth capital fund, Chinese investments globally jumped 118 per cent to USD 21.4 billion in the first quarter of this year.
The A Capital Dragon Index is a reference indicator of Chinese Overseas Direct Investment (ODI) and tracks the globalisation rate of the Chinese economy since WTO accession in 2001.
State-owned enterprises represent 98 per cent of all deal value in the first quarter of 2012 (as against 53 per cent in Q1 FY 2011), a record high, due to focus on resources, A Capital founder and Managing Partner Loesekrug-Pietri said.
"This is obviously due to strong focus on resources, may also show better capacity than private firms to seize opportunities in a volatile and competitive environment," he added.
This trend shows that state-run firms have better capacity than private firms to seize opportunities in a volatile and competitive environment.
"Private firms show a more selective approach to invest into specific technologies or brands that will make them more competitive at home," Pietri added.
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The report further said Europe has become increasingly attractive for Chinese investments, with 83 per cent of non-resources deals focused in these areas.
A sector wise analysis shows that resources and energy represent 92 per cent of all M&A deals in Q1 FY 2012.
"This is unique. The financing capacity of Chinese investors is a strong competitive advantage in capital-intensive industries," the report said.
A Capital expects Chinese outbound investments will increase by USD 800 billion by 2016.