The private equity market in China registered its second best results on record in 2017, cementing its status as the largest market in the Asia-Pacific region.

After a decline in 2016, the country rebounded to 73 billion U.S. dollars in deal value, up from 63 billion dollars the year before, according to the 2018 China Private Equity Report released Wednesday by Bain & Company.

Meanwhile, the average investment size remained high at 128 million dollars.

"China's private equity market has once again done exceptionally well and continues to show investors that it is maturing and becoming more rational," said Lucia Li, a partner with Bain & Company's private equity practice in Greater China.

"The company's findings have shown that the Chinese market remains increasingly desirable and competitive, so all the players wishing to succeed in the country need to ensure that they have developed both short-term and long-term strategies," Li said.

Internet and technology sectors remain the most popular for investors, but investor appetite is shrinking slightly, according to the latest Bain & Company research.

"The country continues to be one of the most attractive markets for investors, but it is clear that firms need to focus on cost transformation and management and invest more in such areas, as the economic growth is slowing down," said Kiki Yang, a partner with Bain & Company's private equity practice.