Cash-rich Chinese companies are still on an overseas buying binge. And this year, the prime targets are resources--iron ore, copper, coal, and natural gas, reports the Wall Street Journal.
Citing Dealogic, the Journal says China's outbound mergers and acquisitions totaled $43.39 billion in 2009. Total outbound M&A in 2008 and 2009 alone surpassed all China's outbound M&A for the previous eight years, notes the newspaper.
"We believe this trend is very likely to continue given the size of the Chinese economy relative to other economies in the region, and the desire for Chinese companies to expand internationally," Ed King, head of M&A for Asia Pacific at Morgan Stanley, told the Journal. King adds that the main area of focus will be resources, which accounted for two-thirds of all China's deals overseas last year.
However, the Journal notes that price and competition could slow China's efforts as a rebound in commodity prices has made resource assets more expensive, and competing buyers from India, South Korea and elsewhere mean China isn't the only buyer in town.