The global economic downturn does not appear to have dampened Chinese corporates' appetite for overseas acquisitions, according to a survey sponsored by The Royal Bank of Scotland (RBS).

The bank reported approximately two-thirds of respondents expect Chinese outbound merger and acquisition (M&A) activity to increase over the next 12 months.

The survey canvassed the opinions of 106 respondents from China and Hong Kong, including Chinese corporates who have undertaken M&A overseas, financial advisory professionals, and private equity firms, on their predictions for and issues surrounding Chinese outbound M&A.

The key findings of the survey include: 63% of respondents expect the level of outbound M&A activity to increase, and a further 50% expect Chinese outbound bidders to target Asian businesses over the next year, with a notable proportion also believing that Chinese bidders will eye North American and European targets (both 39%) over the same time period.

Market share expansion and the acquisition of technology and expertise are the two key driving forces for Chinese outbound M&A activity. Acquiring market share abroad was cited by 52% of respondents as the main reason why a Chinese corporate would undertake a foreign acquisition, while 47% also noted that acquiring technology/expertise would be a primary factor.

The majority (62%) of respondents believe that Chinese bidders targeting foreign businesses are not being adversely affected by the credit crisis. And 57% of respondents believe that the ability of Chinese bidders to finance overseas bids has been affected by the credit crunch while the remainder (43%) think that deal financing has not been impacted.

Michael Bracken, managing director, corporate finance group Asia at RBS, said: "This survey confirms what we see in the market as Chinese corporates remain eager to expand through global acquisitions. This is part of a continuation of a longer term trend and for which the current difficult global economic environment presents opportunities. RBS works with a range of clients in helping them achieve their goals using its global advisory, risk management and financing capabilities."