A high-level Chinese business delegation is set to travel to Europe this weekend to explore investment avenues - close on the heels of a trade team which returned to Beijing last weekend.

Officials in the Ministry of Commerce (MOC) said the team will be mainly looking at investment and merger and acquisition (M&A) opportunities in the first mission of its kind to western Europe.

The most likely targets are companies competitive in manufacturing, clean energy and environmental protection, Beijing-based trade specialists said. Given the market volatility, financial service companies are unlikely to be on the shopping list, they said.

"We will be exploring opportunities for financial participation in European companies," said Commerce Minister Chen Deming, who headed the first trade mission to Europe but, according to MOC sources, is unlikely to lead the second.

Chen made the remarks on Monday after wrapping up his week-long trip to Europe, mainly to import high technologies and advanced equipment.

That trip covered four European countries - Switzerland, Germany, the United Kingdom, and Spain - and resulted in a slew of Chinese orders worth more than US$13 billion.

MOC officials would not reveal any specific figure or targets of interest for investment, saying only that in all likelihood, it would take a longer time to allow Chinese businesses to examine a range of options.

Observers said that while the first trade delegation reflects China's rising domestic demand and its determination to keep its markets open amid rising protectionism, the second will show its interest in working with Europe on investment and corporate management.

China's growing M&A appetite, according to Li Jian, a researcher with the Chinese Academy of International Trade and Economic Cooperation, makes sound business sense.

"The global economic crisis allows Chinese companies, with their ample cash reserves, strategic cross-border partnerships with cash-strapped international companies," Li said.