Merger and acquisition activity in China remains subdued as dealmakers adopt a "wait and see" attitude pending clearer policy direction from the government, a semi-annual report by professional service provider PricewaterhouseCoopers finds.

Amid tightening credit conditions and a slowing economy, first-half M&A deals in China declined 5 percent to 2,118, compared with the previous six months. In value terms, deals fell 6 percent to $119.5 billion.

Deal numbers and values were still higher than a year earlier - but below the peaks of recent years.