Private equity activity in China will become increasingly buoyant over the next 12 months with domestic funds expected to provide strong competition to foreign rivals, according to a study released on Tuesday.

China is home to many of the world’s fastest growing companies and has attracted substantial private equity investment in recent years, although interest plummeted in the aftermath of the global financial crisis. However, the latest annual survey of industry participants by Deloitte, the professional services firm, suggests that confidence has rebounded.