Private equity activity is picking up in China, with limited partners growing more selective about opportunities in technology, including chips, manufacturing, artificial intelligence and robotics, according to industry players.

“In the last 12 to 18 months … we are seeing a lot more [private equity fundraising activities], but I would say it’s very selective” compared with the previous cycle, said Gary Chan, head of private equity of Sun Hung Kai & Co, at a panel discussion at the Asia Private Equity Leadership Summit on Wednesday.

A total of 37 companies raised about US$13.26 billion on the Hong Kong stock exchange’s main board in the three months ended March 31, according to data released on Tuesday by LSEG Data and Analytics. It marks a near-fivefold jump year on year compared with the same period in 2025.

The renewed interest comes as valuations across both China’s public and private markets have reset from their peaks following a turbulent period marked by the US-China trade war, the Covid-19 pandemic and a series of domestic policy reboots, according to Kent Chen, head of Asia Private Equity at Neuberger Berman.

“From a valuation point of view, this is still an attractive moment,” Chen said, adding that China’s tech sector was at an inflection point, where new growth drivers were emerging, from the digital and green economies to advanced manufacturing and AI-powered robotics.

Alex Ying, head of Direct PE Investments at CDIB Capital International, said that “people would like to see a bit more exits”, a sentiment widely shared by many limited partners. ‘Exit’ refers to how private equity firms plan to cash out of their investment and return capital and profits to limited partners.