Multiple deals to take US-listed Chinese companies private are being backed by big cheques from investors back home who are being promised extraordinary returns when the companies relist on China’s own stock markets.

Foreign private equity funds used to be the main players in such transactions, which aim to profit from the sky high valuations afforded to Chinese tech companies in their home market. A consortium led by the Carlyle Group was behind the $3.5 billion leveraged buyout of Focus Media in 2013, for example.