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

LightningPacketLoss · 2026-03-11T13:02:16+00:00

The "2025 China Private Equity Investment Industry Observation Report" released by Zhizhong ZERONE indicates that in 2025, there will be 9,319 institutional LP investments nationwide, with a committed amount of 1.8243 trillion yuan, showing a market rebound. Contributions from the government, major funds, and local state-owned assets reached new highs. State-owned enterprises and listed companies also performed actively, with particular focus on emerging fields such as artificial intelligence. Financial institutions increased their investments by 20% year-on-year, becoming a highlight in the fundraising market.

LightningPacketLoss

2026-03-11 13:02:16

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Recently, ZHIZHONG ZERONE released the “2025 Observation Report on China’s Private Equity Investment Industry - Capital Contribution Chapter.” According to ZHIZHONG ZERONE statistics, in 2025, a total of 9,319 institutional LP investments were made nationwide, a 36% increase compared to 2024. Institutional LP committed capital reached 1.8243 trillion yuan, a 43% rise year-over-year. Structurally, major capital entities such as the National Big Fund, government-guided funds, state-owned enterprises, financial institutions, and listed companies are “diversifying,” driving 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 three major investments by the “Big Fund Phase III” into three national guiding funds—Huaxin Dingxin, Guotou Jiexin, and the National Artificial Intelligence Industry Fund—totaling 224 billion yuan. This is the first investment since the establishment of “Big Fund Phase III,” which, unlike Phases I and II, focuses on artificial intelligence and operates as a partnership, reflecting a more diversified investment approach.

Additionally, based on government-guided fund issuance data, ZHIZHONG ZERONE reports that in 2025, local governments across China issued 496 selection announcements, including 85 for fund managers of parent funds and 407 for sub-funds. The number of sub-fund selection announcements increased by 76% compared to 2024, indicating strengthened willingness among local governments to invest in 2025.

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

Listed Companies “Rebound” in Investment, Targeting AI and New Tracks

As a key source of market-oriented LPs, industrial capital was quite active in 2025. ZHIZHONG ZERONE data shows 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 about 90 million yuan. The main sectors for listed company investments are electronic hardware and biomedicine.

According to announcements from listed companies, ZHIZHONG ZERONE reports that in 2025, listed companies issued 460 notices of intended participation in funds, a 15% increase from 2024. However, actual fund deployment often lags behind these announcements, so these funds are expected to be gradually implemented in 2026.

Regarding key sectors of focus, from 2023 to 2025, listed companies have concentrated on new energy and new materials. In 2025, artificial intelligence became a new key focus, correlating with high market interest and attention on projects in this field.

Financial Institutions Increase Investment by Over 20%, Banks and AIC Accelerate “Taking Action”

Financial institutions’ investments also became a highlight of the fundraising market in 2025. ZHIZHONG ZERONE data shows that in 2025, 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% surge from 2024; insurance institutions’ investments also increased significantly, reaching 114.5 billion yuan, up 58% year-over-year.

Specifically, for bank AICs, 2025 saw more AIC equity investment funds launched than in 2024, with a total committed capital of 72.8 billion yuan. ICBC AIC had the largest committed investment scale, with a total registered fund size of up to 116.6 billion yuan.

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