The latest issue of Asia M&A Review, produced by Dealogic, confirms that China's M&A activity is in turbo-drive. In short, the fundamentals for sustained mergers and acquisitions remain strong. Highlights from their Review include:

* China targeted M&A activity is at its highest level on record with $64 billion recorded for the first 9 months of 2006.

* China cross-border inflow totatled $19.3 billion via 34 deals on the first none months of this year.

* The U.S. is the top acquiror with $5.7 billion, followed by France with $3.7 billion.

The trends and targets in domestic consolidation include:banks, steel, aluminum, cement, real estate, pharmaceuticals, and retail.

Chinese firms invested $18.8 billion buying up other Chinese companies in the 12 months ending in June, 2006. That's a jump of 50% over the year before. The total number of transactions rose to 517 from 406 over the same period.

At a recent China M&A program hosted by the Milken Institute, Wei Wang of China M&A Management Holdings, compared China to an adlolescent " on a very Sharp learning curve, where entrepreneurs are trying to realize their dreams."