The Canadian Press

Experts predict merger and acquisition activity in Canada will rebound next year, although it will be nowhere near the record-breaking levels seen in 2007.

Morgan Stanley Canada president Dougal MacDonald says activity in the financial services and resources sectors has already started to rebound as the economy improves and financing for mergers and acquisitions becomes more available.

He says pension funds have been an important driver of this activity, but Canadian companies should expect to see more bids from Chinese companies going forward as well.

GMP Securities chairman Eugene McBurney agrees, saying Chinese state-owned enterprises are taking a growing interest in Canadian resource companies.

McBurney says there is particular interest in Canadian coal companies and base metals miners.

MacDonald and McBurney were speaking at an event put on by the Conference Board of Canada in Toronto on Monday.