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 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, up 43% year-on-year. Structurally, major capital entities such as the National Big Fund, government-guided funds, state-owned enterprises, financial institutions, and listed companies are all actively participating, 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, a 73% increase from 2024. Notably, national-level guiding funds made substantial contributions. ZHIZHONG ZERONE data shows 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 remarkable are the 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 marks the first investment since the establishment of “Big Fund Phase III,” which, unlike Phases I and II, focuses on artificial intelligence and adopts a partnership model, reflecting a more diversified investment approach.

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

It is noteworthy that, driven by policy support, state-owned enterprises’ investments became active again in 2025. The investment amount by central enterprises exceeded 3 million yuan, reaching the highest in nearly three years, with a 249% increase compared to 2024. Local state-owned capital investments in 2025 also hit a five-year high, up 85% from 2024.

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

As an important source of market-oriented LPs, industrial capital was also 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-on-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 intent to participate in fund investments, a 15% increase from 2024. Since actual fund deployment often lags behind announcement releases, these funds are expected to be gradually implemented 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 one of the new key focus areas, correlating with the high level of attention and activity in this sector 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 2025 fundraising market. 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% increase from 2024; insurance institutions’ investment amounts also increased significantly, reaching 114.5 billion yuan in 2025, up 58% year-on-year.

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