The annual venture capital summit has arrived. From December 2-5, 2025, the 25th China Private Equity Annual Conference, jointly organized by ZERO2IPO (01945.HK), Investment Community, Huitong Jinkong, and Nanshan Zhanxintou, was held in Shenzhen. The event gathered over a thousand top investors and leading entrepreneurs, creating a dynamic "VC Carnival" that combines deep insights with interactive vitality, serving as a window into China's technological innovation.

At the conference, Jin Haitao, Chairman of Qianhai Ark Asset Management and Chief Executive Partner of Qianhai Fund of Funds, delivered a keynote speech titled "The Strategic Role of Venture Capital from a Global Perspective and Prospects for China's VC Development."

Here are the key takeaways from his address:

**Understanding Industry Trends** To grasp any industry's development trajectory, one must analyze shifts in supply and demand, along with corresponding innovations in products and services—venture capital is no exception. For VC, two demand dimensions are critical: national strategic needs and the requirements of investment funds themselves. When these align, exceptional outcomes often follow.

**National Strategic Perspectives** Countries prioritize innovation differently, primarily through two approaches: 1. **Innovation-Driven Investment Strategy**: This fosters a financial ecosystem supporting SMEs and disruptive technologies, encouraging risk-taking to spur innovation. The U.S., Israel, and China exemplify this model. Under this strategy, capital floods into tech innovation, fueling economic cycles and global leadership. For instance, the U.S. dominates global market capitalization, Israel punches above its weight in Nasdaq listings, and Taiwan’s semiconductor giants like TSMC and UMC emerged from industrial transformation. 2. **Traditional Investment-Driven Strategy**: Reliant on bank financing and incremental innovation at large firms, this approach—seen in Japan, parts of Western Europe, and Russia—often leads to stagnation. Japan, despite its tech prowess, missed waves like the internet and AI, while Europe’s conservative markets lag in dynamism, and Russia remains energy-dependent.

China’s commitment to innovation-driven VC has propelled its tech sector from follower to leader in many fields. Since 1999, VC-backed growth has contributed significantly to China’s 13-fold GDP expansion and the creation of the world’s most comprehensive industrial chain. Over 90% of STAR Market and 50% of ChiNext listings owe their success to VC support.

**Five Key Investment Directions** Jin outlined five processes shaping VC opportunities: 1. **Addressing Weak Links**: Focus on overcoming "chokepoint" technologies to secure supply chains. Firms like CXMT and Moore Threads exemplify breakthroughs in semiconductors. 2. **Digital Transformation**: The fusion of software and hardware is revolutionizing traditional industries. Investments like Jubo Glass (a B2B glass platform) and early bets on Doosan Robotics highlight this trend. 3. **Carbon Neutrality**: Energy transition, now demand-driven, requires VC backing for nascent tech like solid-state batteries, despite early skepticism. 4. **Healthcare Evolution**: China’s biotech sector is catching up with the West, with gene editing and CAR-T therapies poised for leadership. 5. **Consumption Upgrade**: Underrated in capital markets, consumption remains vital for growth and well-being, warranting more investment.

**Seven Market Outlooks and Recommendations** 1. **Patient Capital**: Encourage long-term, early-stage investments by relaxing fund timelines and ditching short-term metrics like DPI. 2. **Diversified Funding**: Balance government capital with private financial institutions and family wealth to alleviate fundraising challenges. 3. **Capital-Driven Local Policies**: Adapt to models like Hefei’s, where VC aids regional industrial shifts. 4. **Post-Investment Management**: Prioritize hands-on support over chasing unicorns; 70% of value comes from post-investment nurturing. 5. **S-Funds and Continuation Funds**: Vital for liquidity, these tools prevent exit crunches but need faster adoption. 6. **Sectoral Balance**: Avoid overconcentration; support innovation across all industries. 7. **Healthy Secondary Markets**: Robust IPO and M&A channels are essential for primary market vitality.

Jin concluded by advocating for systemic inclusivity, diversified capital, efficient exits, and deep-rooted services to usher in a "golden era" for China’s innovators. He called for bold reforms to seize this historic opportunity.