According to the new policies, other than investments in sensitive countries and industries, outbound investments of less than $1 billion no longer require government approval. Instead, only a filing with NDRC or its provincial branches is required.

"With the new approach, uncertainty and the time required for NDRC approval are expected to be significantly reduced, especially for deals under $1 billion," said Gregory, adding that most of the outbound investment deals by Chinese enterprises fall into this category.

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"In several outbound investment deals we have been working on, the Chinese investors, by taking advantage of the new measures, were able to compromise in this respect in exchange for concessions from the sellers in other respects."

Chinese technological companies also have been eyeing alliances within the sector. In April, Alibaba Group Holding Ltd announced its plan to acquire an 18.5 percent stake of Youku Tudou Inc, the Chinese version of YouTube. At the end of May, the e-commerce company also snapped up a share of Singapore Post Ltd.

"The current wave of M&A activities could potentially encourage strategic business alliances among Chinese technological players to emerge. Chinese companies are also riding this wave to transform themselves over time from domestic leaders to global champions," said Christopher Chua, head of China M&A with Credit Suisse.

Another catalyst fueling rising M&A deals this year is the buoyant capital market, said Merrill Lynch's Cheng, who also advised JD.com on its $3.45 billion e-commerce strategic alliance with Tencent Group in March. "Small companies are increasingly receptive to investment from sector leaders. There is a point where they feel that, valuation-wise, it makes sense to sell."

Globally, the technology sector, especially the dotcom companies, has seen a boom in the past 12 months. ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, surged to 1,558 in February, the highest level in a decade. It now stands at above the 1,400 level.

"The boom in the technology sector, both in China and the US, is very important in the success and future of technology M&A," said Brett McGonegal, CEO of Reorient Group, a Hong Kong-headquartered boutique house that served as financial adviser in Alibaba's acquisition of ChinaVision Media Group Ltd in March.