"Valuations of most Chinese firms are relatively high at this stage," Liu said.

Some companies saw share prices surge by five times within a year, and it is hard to tell whether prices are done correcting yet.

On the other hand, analysts upgraded some companies after their share prices hit historic lows.

Sina Weibo skyrockets in debut

Alibaba reports strong growth before IPO

Sohu was upgraded from a "neutral" to "overweight" in a report released by HSBC on Friday, T.H. Capital maintained an "overweight" rating for Ctrip and a target price of $66 this week.

Of the Chinese companies now preparing IPOs, the most notable is Alibaba. Zhaopin, China's biggest job recruitment site, filed on Wednesday for an initial public offering on the New York Stock Exchange. It hopes to raise up to $100 million.

Alibaba rival JD.com is reportedly planning an IPO for later this year.

Timeline

Major events in Alibaba's development

2000

SoftBank Corp invests $20 million in Alibaba. The company goes on to acquire more than 30 percent of Alibaba after its initial public offering in the United States.

August 2005

Yahoo Inc inks a strategic partnership with Alibaba, agreeing to invest roughly $1 billion to get a 40 percent stake in the e-commerce company.

2007

Alibaba lists its Alibaba.com (1688.com), a business-to-business site focusing on exports, in Hong Kong. At an IPO share price of HK$13.50, Alibaba.com raises HK$13 billion.