(Yicai Global) July 25 -- China's tightened regulation over irrational overseas investments has seen the number of outbound mergers and acquisitions decline, while deals conducive to industrial upgrades, technological advancement, international cooperation and the One Belt, One Road initiative are still in full swing.

As of July 24, A-share listed firms had made 105 overseas deals, up 57 percent on the year, while the total value of such transactions fell 38 percent to USD35.7 billion, Shanghai Securities News reported. Of these, the number relating to properties, hotels, cinemas, entertainment and sports had fallen 100 percent to just four investments.

So far this year there have been far fewer deals worth less than USD10 billion, with the value of agreements worth less than USD1 billion making up 70 percent of all transactions. Firms working in healthcare, mining, online software, machine manufacturing and infrastructure were the most prevalent target companies.

The major swing in overseas investments began at the end of last year, when officials at the National Development and Reform Commission, Ministry of Commerce, People's Bank of China and the State Administration of Foreign Exchange agreed to pay close attention to irrational foreign investments into property, hotels, entertainment and sports clubs. The regulators also decided to monitor potential risk from high-value investments into firm's non-primary businesses, outbound investments from limited partnerships and investor with large-scale subsidiaries but inferior parent companies.

The watchdogs are now striving to find a balance between facilitating the opening up of China's market to the international community while minimizing risks. Foreign investments of strategic significance are expected to become the norm in the near future.