Slowing economy brings more reasonable valuations for target companies, reports Xie Yu in Hong Kong.

A slower economy and the government's determination to squeeze out overcapacity are offering great opportunities for merger and acquisition activity in China, according to industry experts.

"The end of the 'China growth' story is bringing the valuation of target companies down to relatively reasonable levels," said David Brown, partner and greater China private equity leader with PricewaterhouseCoopers.