The PE industry in China has grown from basically zero a decade ago into the dominant one in the Asian region.

"Chinese private equity companies used to focus on late-stage companies that could achieve an IPO within a short time.

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"But with the chances for quick cash-outs diminishing, more PEs are shifting their strategies," said Roger Liu, who handles private equity deals for PwC in the Chinese mainland and the Hong Kong Special Administrative Region.

Given current conditions, investors should "nurture" prospective projects with a mid- to long-term perspective and invest in fields and markets, with which they are familiar, said Wu Huaquan, managing director of Guangzhou Chuangchen Capital Management Co Ltd.

From November 2012 through December 2013, China's A-share market experienced its longest IPO embargo as the process for initial offerings in the country was reformed. All IPOs in 2013 went to either Hong Kong or the United States.

During the year, there were 35 IPOs of Chinese companies that were initially backed by private equity or venture capital, 43 percent of those in the US. It was the first time the US figure had exceeded that of China since 2008.

It was also the third straight year of decline for PE exits.

However, PE-backed IPOs recovered in the second half of 2013, albeit off a very low base. The rebound continued in January and February 2014 as the A-share equity markets opened up again.

"We expect to see quite a number of PE-backed IPOs in 2014," Liu said. "We also expect to see more secondary PE-to-PE deals," he added.