In November 2025, China’s private equity and venture capital market showed mixed trends. Newly registered private equity and venture capital fund managers totaled 11, marking a 31.3% year-on-year (YoY) decline and an 8.3% month-on-month (MoM) dip. Meanwhile, 38 fund managers were deregistered, with over 60% voluntarily exiting. Newly filed private equity and venture capital funds reached 404 (134 PE and 270 VC), up 2.5% MoM and 29.5% YoY.
Investment activity surged in volume but contracted in value. The primary market recorded 614 financing deals, up 40.5% YoY and 34.4% MoM, while disclosed funding fell sharply to 28.23 billion yuan (down 49.0% YoY and 34.2% MoM). The average deal size halved YoY and MoM to 4.6 million yuan. A standout deal was autonomous driving supplier Zhuoyu Tech’s 3.6-billion-yuan strategic investment from FAW Group, which now holds a 35.8% stake.
Early-stage funding (Seed, Angel, Pre-A, and A rounds) dominated, accounting for 73.3% of deals. The A round remained the most active, representing 35.8% of transactions. Strategic financing led in total disclosed capital (8.01 billion yuan), followed by the A round. Seed-stage funding spiked 501.2% MoM, driven by humanoid robotics firm Simple AI’s 200-million-yuan raise, while surgical robot company Corindus’ near-200-million-USD Series C pushed the round’s total up 124.7% YoY.
Sector-wise, advanced manufacturing led with 123 deals (52.8% in semiconductors). AI ranked among the top three for the 16th consecutive month, with 103 deals (up 94.3% YoY) and 6.03 billion yuan in funding—doubling YoY. Smart robotics claimed 55.3% of AI funding, while foundational AI layers like computer vision and LLMs secured 19.2%.
Geographically, Jiangsu topped with 119 deals, though funding shrank 43.4% YoY. Shenzhen saw a 6-fold YoY surge in capital (7.68 billion yuan), fueled by Zhuoyu Tech, cloud chipmaker Cloud Leopard, and Corindus.
Key investors included Shenzhen Capital Group, HongShan China, and Inno Angel Fund. USD funds rebounded, with state-backed institutions comprising only 20% of top investors.
Fundraising highlights included Source Code Capital’s 600-million-USD dual-currency fund (focusing on AI and global opportunities) and Monolith’s 488-million-USD dual-vehicle close. Hangzhou’s 2-billion-yuan Runmiao Fund, targeting tech SMEs, also launched.
Six mega-deals (over 1 billion yuan each) totaled 9.02 billion yuan, led by semiconductors in advanced manufacturing. State-backed and local government funds played pivotal roles, reflecting policy-capital synergy. Cross-border investors, including sovereign funds, backed hard tech like medical robotics, underscoring global confidence in China’s high-end sectors.
Emerging trends featured AI coding startup Verdent AI, which raised tens of millions USD in Angel and Pre-A rounds from HongShan and Tencent. Founded by ex-TikTok and Baidu executives, its ARR nears 10 million USD with a three-person team.