Private equity firms enjoy a 'banner year' in China

The report said technology and consumer-related sectors accounted for more than half the amount of PE deals, reflecting investment plans that aim to be in tune with the strategic direction of the wider economy.

It showed PE fundraising in China remained healthy, with the strongest dollar fundraising since 2008 and a slight uptick in renminbi fundraising.

Total equity investment funds raised in China last year accounted for 9 percent of the funds raised globally, compared with 6 percent in 2013.

Fundraising for the Chinese mainland and Hong Kong markets dominated the Asian PE sector with around $365 billion raised from 2004 to 2014 (not including allocations from non-China specific funds). This dwarfed Japan in second place with $77 billion and India in third with $62 billion.

"Unlike in developed markets, yuan-denominated PE fundraising has been dominated by retail investors. This is changing as institutions in China including securities and insurance companies are granted permission to invest in PE, which will bring hundreds of billions yuan over the medium term," said Vincent Cheuk, Northern China head of the private equity group at PwC China.

As expected, there was a rebound in the number of PE and VC exits. Trade sale exits by mergers and acquisitions hit a record high, but initial public offerings, although at a three-year high, were well below the levels seen in 2010 and 2011.

Cheuk said: "The industry as a whole is moving into an 'exit phase' and the backlog of exits also represents a challenge for the sector.

"The A-share market has been and will continue to be an important exit route for PE investors. However, we will also see trade and secondary sales by M&A becoming more frequent."