Despite depressed global M&A volumes, deal value in North East Asia increased during the last quarter by 30% compared to the same period last year, with deal values returning to levels last seen in 2007 and 2008, according to the findings of the latest Allen & Overy M&A Index.

The study also shows that China and Hong Kong are amongst the world’s top ten leading outbound acquirers.

Inbound investment into Greater China by multinational companies remains buoyant, the continuing trend of companies allocating funds for growth in Greater China is clear, with many doing so in the belief that the region holds better prospects for growth.

As multinationals deepen their investment into the region, seeking to grow by expansion, there has been upwards of US$95 billion worth of M&A activity in Greater China during the first three quarters of 2011 and transactions are beginning to increase in size, average deal value in Q3 2010 was US$546 million, while in Q3 2011 it had increased to US$634 million.

Outbound M&A, however, continues to gather pace in Asia, fuelled partly by the region’s, in particular China’s, ongoing need for energy and natural resources. China is the world’s fourth most active participant in energy and resources M&A in the year so far, contributing 20 deals overall, 14 of which were international, with a combined value of almost US$10 billion.

The largest recipient of outbound Chinese M&A cash was Australia where deal values amounted to US$2.9 billion. Other sectors where Chinese companies made a strong impression over the year to date were technology, media and telecommunications (TMT) accounting for 4.3% of deal volume and life sciences with 4.2% of deal volume.