The value of domestic and outbound deals in the Chinese merger and acquisition market reached record highs in the first half of 2013, Zero2IPO Group Chairman Ni Zhengdong said on Thursday.

There were 359 domestic deals totaling 40.3 billion yuan ($6.6 billion), with outbound deals valued at 27.6 billion yuan, Ni said.

"Although the growth of the Chinese economy slowed and the IPO window was closed," the M&A sector in China was very active, said Ni.

The energy and mining sectors were the most popular, with deals valued at $17 billion, accounting for 40 percent of the total. Other active sectors included property, healthcare, the Internet, manufacturing and clean technology.

Private equity investors were most active in the healthcare sector, based on the number of deals they were involved in, which stood at 22.

PE deals in the property, finance and Internet sectors involved the largest amounts, reaching $17.5 billion.

Ni added that M&A funds set up by securities firms are making an effort to develop business in China as the country's regulations are liberalized.

Ni said the challenges for these funds include difficulties in raising money and exiting investments.

The advantages of M&A funds backed by securities firms include business support from parent companies, connections with investment banking and asset management and a pool of professional talent.

"The volume of the domestic merger and acquisition market can reach 6.5 trillion yuan during the 12th Five-Year Plan period (2011-15), which offers great potential," said Xu Bo, a managing director at CITIC Buyout Fund Management Co Ltd, which was the first M&A fund set up by a Chinese securities company.

Xu said the fund's limited partners are government vehicles, large-scale private companies and State-owned firms.

The buyout fund focuses on the purchase of controlling stakes and industry integration, among other factors, he added.

Besides CITIC Securities, Guangfa Securities Co Ltd, Everbright Securities Co Ltd and Haitong Securities Co are participating in the development of M&A funds.

From 2006 to 2011, there were 51 M&A funds ($64.2 bilion) established that were related to the Chinese market.