A hundred-billion-yuan central enterprise fund sets sail

Another large amount of "patient capital" has been injected into the market, providing strong impetus for the recovering venture capital industry.

Another Large Influx of Capital

Following Beijing, the Chengtong Science and Technology Innovation Jiangsu Fund has also arrived.

According to official information from Chengtong Science and Technology Innovation, on December 29th, guided by the State-owned Assets Supervision and Administration Commission of the State Council and initiated by China Chengtong, the second venture capital fund with a total scale of 10 billion yuan - the Chengtong Science and Technology Innovation Jiangsu Fund - completed industrial and commercial registration.

It is reported that after the State-owned Assets Supervision and Administration Commission of the State Council and the National Development and Reform Commission jointly issued policy measures to promote the high-quality development of central enterprise venture capital funds, China Chengtong quickly implemented them. At the end of 2024, it took the lead in initiating the establishment of a central enterprise venture capital fund with a total scale of 30 billion yuan and rapidly completed the establishment of the first 10-billion-yuan Chengtong Science and Technology Innovation Beijing Fund. To continuously explore the reform practice of central enterprise funds and widely enhance the brand value of Chengtong Science and Technology Innovation Funds, China Chengtong signed a framework cooperation agreement with the People's Government of Jiangsu Province to jointly establish the 10-billion-yuan Chengtong Science and Technology Innovation Jiangsu Fund, working together to promote regional scientific and technological innovation, industrial upgrading, and the cultivation of new productive forces.

The Chengtong Science and Technology Innovation Jiangsu Fund will adhere to the basic positioning of supporting scientific and technological innovation and industrial development, focusing on "investing in early-stage, small-scale, long-term, and hard technology" projects. It will effectively play the positive role of central enterprise venture capital funds in cultivating and incubating strategic emerging industries and future industries, helping central enterprises strengthen their core functions and enhance their core competitiveness, and making greater contributions to the construction of Chinese-style modernization!

In May this year, the Chengtong Science and Technology Innovation Investment Fund (Beijing) Partnership (Limited Partnership) completed industrial and commercial registration in Beijing, marking a crucial step for the Chengtong Science and Technology Innovation Investment Fund. In terms of investment areas, the fund will focus on the "hard technology" investment main channel, with key layouts in three core areas: new materials, advanced manufacturing, and new-generation information technology. Through a combined strategy of "equity investment + ecological incubation," it will build a complete investment chain from technological research and development to scenario application.

In July, China Chengtong signed a framework cooperation agreement with the People's Government of Jiangsu Province in Nanjing to jointly promote the establishment of the 10-billion-yuan Chengtong Science and Technology Innovation (Jiangsu) Fund. At the same time, the framework agreements for two sub-funds of the Chengtong Science and Technology Innovation (Beijing) Fund to be launched in Jiangsu were also signed, meaning that the Chengtong Science and Technology Innovation (Beijing) Fund has officially entered the capital contribution stage.

According to previous news, the Chengtong Science and Technology Innovation (Jiangsu) Fund will form a "mother fund + direct investment fund" synergy with the 10-billion-yuan venture capital mother fund established in Beijing earlier.

Now, with the official registration of the Chengtong Science and Technology Innovation Investment Fund (Jiangsu) Co., Ltd., the venture capital industry has welcomed another "patient capital" with a long-term vision, injecting fresh capital into the development of early-stage projects.

Market Recovery

The year 2025 has come to a perfect end. After a period of adjustment, the venture capital industry has gradually shown signs of recovery. From fundraising, investment to exit, positive changes have occurred in each link. With policy support, the launch of the 100-billion-yuan national venture capital guidance fund, and the successive establishment of multiple central enterprise mother funds, new vitality has been injected into the market.

In the past few years, "difficulty in fundraising" has become a common dilemma in the industry. Especially since 2022, both RMB and US dollar funds have faced challenges, and some institutions have even shrunk and adjusted. However, in 2025, with the rising popularity of tracks such as AI and robotics, the recovery of the secondary market and the increasing activity of the Hong Kong stock market, confidence in the primary market has gradually recovered, the willingness of LPs to contribute capital has increased, and market activity has significantly rebounded.

From the perspective of the fundraising end, the activity of institutional LPs in contributing capital has continued to rise. According to statistics from FOFWEEKLY, the activity of capital contribution in November 2025 showed a positive development trend, with a month-on-month increase of 14.7% and a year-on-year increase of 31.8%. The year-on-year dimension continued the significant growth compared with the same period last year, and the overall market activity was positive. From the perspective of fund filing data, the total number of newly filed private equity and venture capital funds in November was 404, a month-on-month increase of 2.5% compared with October and a year-on-year increase of 29.5%. Among them, 134 private equity investment funds and 270 venture capital funds were filed. The year-on-year dimension continued the significant growth compared with the same period last year, and the overall market activity was positive.

The investment end has also shown signs of recovery. According to data from the Venture Capital Connect of Cailian Press, a total of 6,462 investment and financing events occurred in the domestic primary market in 2025, a year-on-year increase of 7.25%, and it was the first time in the past four years that the decline has stopped and rebounded.

The exit channels are also gradually being unblocked. Data from the Zero2IPO Research Center shows that a total of 247 Chinese enterprises were listed at home and abroad in 2025, a year-on-year increase of 26.7%. The initial public offering (IPO) financing amount was approximately 326.632 billion yuan, a year-on-year increase of 126.4%. Among them, 138 Chinese enterprises were listed in the second half of the year, with an IPO financing amount of approximately 205.272 billion yuan, a year-on-year increase of 22.1% and 110.9% respectively, and a month-on-month increase of 26.6% and 69.1% respectively.

At the same time, the reform of local venture capital has been continuously deepened. More and more government guidance funds are reshaping the "long-term capital" ecosystem through mechanism innovation. According to the observation of FOFWEEKLY, the duration of many mother funds, such as the Luoyang Angel Mother Fund, the Shanghai Future Industry Fund, the Special Mother Fund for the Aerospace Industry in Yangzhou, Jiangsu, the Special Mother Fund for the Green and Low-carbon Industry in Yancheng, Jiangsu, the Fengxian Mother Fund, and the Guoxin Venture Capital Fund, is clearly set at 15 years, or even up to 20 years.

On the other hand, the decision-making speed of local state-owned LPs has also significantly improved. Recently, many local mother funds told us that their decision-making efficiency this year has been very high, and they are in extensive contact with GPs. In addition, cross-regional and cross-level joint capital contributions have become the mainstream trend in current fund establishment, and the pattern dominated by a single local finance is being replaced by the collaboration of multiple parties' capital, including the state, local governments, and financial institutions.

In the view of Wang Chunjie, the managing director of Shanyu Capital, "The next few years will be an important window period for the capital contribution of national-level funds, which is expected to fill 20% - 30% of the market-oriented capital gap for GPs."

Some industry insiders further pointed out that "this may even promote the emergence of a group of new-generation GPs."

It can be said that at the end of 2025, the primary market has gradually emerged from the trough and entered a new stage with a clearer main line.

Conclusion

In 2025, with the warm policy environment and technological changes, the primary market has gradually regained its vitality.

Looking forward to 2026, with the continuous release of institutional dividends and the further support of state-owned "patient capital," the market is expected to recover further. With the healthy development of the IPO market, the continuous unblocking of exit channels, the successive capital contributions of national-level mother funds, and the steady return of market-oriented LPs, the venture capital ecosystem will be promoted to enter a new and more healthy and sustainable development stage.

This article is from the WeChat official account "FOFWEEKLY", and is published by 36Kr with authorization.