In 2025, institutional LP investments in the venture capital market will exceed 1.8 trillion yuan

Recently, ZHIZHONG ZERONE released the “2025 Observation Report on China’s Private Equity Investment Industry - Capital Contribution Section.” According to ZHIZHONG ZERONE, in 2025, a total of 9,319 institutional LP investments were made nationwide, a 36% increase compared to 2024. Institutional LPs committed 1.8243 trillion yuan, a 43% rise year-over-year. Structurally, major fund sources such as the National Big Fund, government-guided funds, state-owned enterprises, financial institutions, and listed companies are all actively participating, leading to a significant rebound in the venture capital fundraising market in 2025.

Local State-Owned Capital Investment Reaches Five-Year High

According to ZHIZHONG ZERONE, in 2025, 307 government-guided funds made 757 investments, with committed capital of 398.2 billion yuan, up 73% from 2024. Notably, national-level guiding funds made substantial contributions. ZHIZHONG ZERONE reports that in 2025, national-level guiding funds committed 230.4 billion yuan, compared to only 10.7 billion yuan in 2024.

Among the investments by national-level funds in 2025, the most notable are the three major “Big Funds Phase III,” which invested heavily in three national guiding funds—Huaxin Dingxin, Guotou Jiexin, and the National Artificial Intelligence Industry Fund—totaling 224 billion yuan. This is the first investment after the establishment of the “Big Funds Phase III,” which, unlike Phases I and II, focuses on artificial intelligence and is structured as a partnership, reflecting a more diversified investment approach.

Additionally, based on government-guided fund disclosures, ZHIZHONG ZERONE reports that in 2025, local governments across China issued 496 funding announcement notices, including 85 for fund managers of parent funds and 407 for sub-funds. The number of sub-fund announcements increased by 76% compared to 2024, indicating a stronger willingness to invest from local guiding funds.

It is also noteworthy that, driven by policy support, state-owned enterprises (SOEs) reactivated their investments in 2025. SOEs invested over 3 million yuan, the highest in nearly three years, with a 249% increase compared to 2024. Local SOE investments also reached a five-year high, up 85% from 2024.

Listed Companies’ Investment “Rebounds” Focused on AI and New Tracks

As a key source of market-oriented LPs, industrial capital was quite active in 2025. ZHIZHONG ZERONE reports that 2,543 industrial investors made 3,126 investments, totaling 185.7 billion yuan.

Specifically, the investment amount by listed companies has been declining since 2022 but showed signs of stabilization and gradual recovery in 2025, reaching 31.7 billion yuan, a 24.8% increase year-over-year. The average investment per deal slightly decreased compared to 2024, to around 90 million yuan. The main sectors for listed company investments are electronic hardware and biomedicine.

According to announcements from listed companies, ZHIZHONG ZERONE notes that in 2025, 460 announcements were made regarding planned investments in funds, a 15% increase from 2024. However, actual fund deployments tend to lag behind these announcements, so these funds are expected to be realized gradually in 2026.

Regarding key sectors of interest, from 2023 to 2025, listed companies have focused mainly on new energy and new materials. In 2025, artificial intelligence became a new key focus, correlating with the high attention and activity in this field within the current investment and financing market.

Financial Institutions’ Investment Surges Over 20%, Banks and AIC Accelerate “Taking Action”

Financial institutions’ investments also became a highlight of the fundraising market in 2025. ZHIZHONG ZERONE reports that 148 financial institutions made 444 investments, totaling 261.2 billion yuan, a 22% increase compared to 2024.

Among them, banking institutions made 130 investments, a 195% increase from 2024; insurance institutions also significantly increased their investments, reaching 114.5 billion yuan, up 58% year-over-year.

Specifically, for bank AICs, 2025 saw more equity investment funds being established than in 2024, with a total committed capital of 72.8 billion yuan. Industrial and Commercial Bank of China (ICBC) AIC had the largest committed investment scale, with a total registered fund size of up to 116.6 billion yuan.