Bain: PE firms can grow amid odds

While China's private equity firms still face onerous challenges this year due to economic growth pressure, fewer initial public offerings and continued divergence in valuation expectations, they can still look for opportunities in emerging industries such as artificial intelligence and multinational company spin-offs, said market consultancy Bain & Co.

Despite existing difficulties in fundraising, Chinese PEs are searching for more valuable investment sectors, including AI, said Bain &Co's survey report released on Tuesday.

About 25 percent of surveyed Chinese limited partners (capital providers), general partners (capital managers) are looking for investable assets in the AI sector. Meanwhile, 33 percent of Chinese GPs and LPs are keeping an eye on generative AI's impact on due diligence processes for potential deals.