This was a record for the region both in terms of deal numbers and total value in the first three quarters of any year as logged by Mergermarket and came in spite of China's economic turmoil.

“Increased competition for Asian targets has affected the valuations that companies are willing to pay,” Mergermarket said.

The three months to the end of September saw deal value rocket to 169.6 billion, constituting a record third-quarter value yet. China, Hong Kong and South Korea were identified as the top three target markets in Asia for investors but non-Asian investors appeared deterred by China's stock market slide and conducted just five deals in the country, worth a total of $97 million. 

Meanwhile, Chinese investors took to their foreign currency reserves to fund purchases abroad, Mergermarket noted. In the third quarter, Chinese companies invested $28.1 billion, three times more than a year ago.

“Even though overseas acquisitions have become more expensive, Chinese companies have invested $66.8 billion to date, up 49 per cent by value compared to the same period in 2014.”

In particular, India experienced a hike in deal activity as optimism continued to surround Modi's reform agenda. So far, there have been 298 deals in the country this year, worth a total $ 27.6 billion, up 23 per cent from the corresponding period of 2014. Of note, over 40 per cent of these deals were done by companies outside of the Asia-Pacific region.