Asia is still the hottest destination for China's overseas investment, accounting for more than half of the country's total foreign direct investment, a report by global consulting firm KPMG and China International Contractors Association said.

According to the report, which was released by the two sides during the 4th International Infrastructure Investment and Construction Forum in Macao on Friday, the energy sector is an investment priority for Chinese companies. In addition, the investment on the manufacturing industry has also grown.

James Stewart, chairman of KPMG's global infrastructure department, said that apart from Asia, Europe and North America are also places where Chinese investors are targeting markets.

"As Chinese enterprises' investment categories have been diversified and more and more private companies take part in overseas expansion moves, the general innovation abilities and competitiveness of Chinese investors has been upgraded," said Diao Chunhe, CICA's chairman.