The 2025 CVCA Annual Conference and PE/VC Summit was successfully held.
On December 3rd, the 2025 Annual Conference of the China Venture Capital and Private Equity Association (CVCA) and the PE/VC Summit Forum were held in Beijing. Founded in 2002, CVCA is the earliest-established venture capital and private equity investment industry association in China, gathering many industry pioneers and leaders. Over the years, CVCA has always been committed to promoting the healthy development of China's equity investment industry and speaking up for the industry! At this summit forum, dozens of top Chinese investors and professionals shared their views. In the five themed sub-forums, they delved into macro trends and market coping strategies from different perspectives such as PE/VC and LP/GP, and looked forward to new development opportunities.
At the site of this year's annual conference, the 2025 "CVCA Socio-economic Contribution Research Report" was released. This report covers a total of 59 CVCA council institutions and regular members. Divided by the currency of the managed funds, 5 institutions (8.5%) are pure RMB fund managers, 12 institutions (20.3%) are pure US dollar fund managers, and 42 institutions (71.2%) are dual-currency fund managers, with a total management scale of approximately 9.9 trillion RMB.
The research data shows that CVCA member institutions have invested in approximately 5,000 Chinese enterprises, with a cumulative investment amount of approximately 3.2 trillion RMB. The investment industries and fields are extremely extensive, covering all aspects of the national economy. There are not only high-tech industries such as the Internet, mobile Internet, intelligent manufacturing, enterprise services, biotechnology, healthcare, artificial intelligence, 5G and communications, and green environmental protection, but also various sub-sectors related to people's daily lives, including new consumption, national fashion brands, new energy vehicles, modern agriculture, tourism, cultural sports, and home furnishing chains. Among them, the investment proportions in industries such as healthcare, enterprise services, manufacturing, e-commerce, finance, automotive transportation, and artificial intelligence all exceed 60%. This fully reflects that equity investment injects development momentum into China's real economy through capital support, resource integration, and strategic guidance.
Kuang Ziping, the Chairman of the China Venture Capital and Private Equity Association and the founding managing partner of Qiming Venture Partners, said in his opening speech at the forum that this year is a year full of confidence in the equity investment market. Whether it is the excellent performance of exits in the secondary market or the confidence brought by "the rapid rise of DeepSeek this year" to China's technological development, they have effectively boosted the certainty of the industry. We believe that the industry will surely welcome a better and warmer investment environment in the future.
Tang Kui, the new Chairman of the China Venture Capital and Private Equity Association and the Chairman and CEO of FountainVest Partners, said that since its establishment 23 years ago, CVCA has accompanied the development of China's private equity industry all the way and witnessed the growth of many Chinese VC and PE investment institutions. I am very honored to have the opportunity to work hand in hand with many excellent colleagues in the association to jointly promote the better and faster development of China's private equity industry. In the future, we will actively promote communication and interaction between the association's council, member units, and government regulatory departments. We also sincerely call on the council members, members, and all staff of CVCA to do their best and cooperate fully to jointly contribute ideas and suggestions for the long-term and healthy development of China's private equity industry.
Sub-forum 1: PE's View on Macro Trends and Industry Strategies
Since the beginning of this year, as the uncertainty brought about by changes in the external environment has deepened, the stable operation of the economy has faced certain challenges. The global private equity market continued its recovery momentum at the beginning of 2025, but the global tariff adjustments have had a profound impact on the economies of various countries, injecting new variables into the market. How can top Chinese investors correctly predict domestic and international macro trends and formulate effective investment and coping strategies? In the medium and long term, which industries do PE firms favor and which tracks do they plan to layout? As GPs, how can they interpret the prospects of future PE investment in China to LPs? Liu Erfei, the CEO and founding partner of Asia Investment Capital; Qiu Zhongwei, the Chairman of PAG China; Sun Qiang, the founder and Chairman of Chenxi Orient and the former Chairman of TPG China; Sun Zheng, a partner of KKR; Tang Kui, the Chairman and CEO of FountainVest Partners; Xin Yuesheng, a senior partner of Xinchen Capital; and Zhang Ning, the managing partner of the Beijing office of Morgan, Lewis & Bockius LLP, conducted an in-depth discussion on the topic of "PE's View on Macro Trends and Industry Strategies".
Liu Erfei: In 2025, we will still face multiple challenges brought about by the macro economy and geopolitics. However, it is worth noting that the emergence of DeepSeek at the beginning of the year not only triggered a revaluation of Chinese assets by global investors and restored confidence but also released positive signals for the revaluation of the secondary market and the optimization of exit channels.
Qiu Zhongwei: As China's economy gradually approaches the bottom asset prices, the activity of the entire market will still have great room for improvement. In the future, there will be great growth space for merger and acquisition funds. First, there are not many merger and acquisition funds, and the competition is not as fierce as in the United States. Second, the current core interest rate in China is dropping rapidly, which will bring better economic returns. Finally, there is relatively large room for industry integration and management improvement of Chinese enterprises, and the overall returns of merger and acquisition funds can be maintained at a relatively good level.
Sun Qiang: In 2025, two major fields in China have witnessed positive development. The R & D of innovative drugs in the healthcare field has advanced by leaps and bounds. In 2018, drugs developed in China only accounted for 1% of the new drugs approved by the US FDA, but by 2025, drugs developed in China account for 20% of the market share. The other is the AI field. We have a fast, high - quality, and cost - effective data center ecosystem and servers. The combination of China's technology and strong manufacturing capabilities has continuously enhanced the confidence of all investors.
Sun Zheng: As a foreign - funded PE institution, KKR focuses on long - term investment and focuses its investment in China on fields such as consumption and retail. In these relatively traditional industries, even if the growth of the entire industry slows down and some sub - industries do not grow, we can still see that some excellent enterprises will achieve very good performance. In China, especially in merger and acquisition investment, the source of returns is gradually shifting from the growth of the overall industry (Beta) to the excellent performance of specific invested enterprises (Alpha). Although there are short - term challenges at the macro level, as such a large market, China has infinite potential in the future, and we will maintain long - term attention to China.
Tang Kui: Recently, the merger and acquisition exit market has become increasingly active, injecting confidence into the private equity industry in terms of fundraising, investment, and strategic cooperation. Currently, the slowdown of IPO rhythm, the spin - off of multinational enterprises, domestic industry integration, and Chinese enterprises going global all bring multiple opportunities for merger and acquisition investment.
Xin Yuesheng: Since the beginning of this year, the Chinese private equity industry has clearly felt the positive trend of the market. For some time before, Chinese assets were severely undervalued, and now is a good time for the re - pricing of Chinese assets. The RMB has more advantages due to its low interest rate and pricing power and will become the main target of all fundraisers in the private equity industry. At the same time, the RMB has a large appreciation space, and China will welcome a more competitive environment. We are also actively increasing the intensity of investment.
Zhang Ning: Since the beginning of this year, the re - valuation of the secondary market has had a positive transmission effect on the primary market. In many popular pre - IPO and IPO cornerstone projects, leading institutions have reappeared to scramble for investment quotas. The continuous efforts of Hong Kong IPOs and the secondary market have also brought many changes on the private equity investment side. In the long run, the going - global and globalization of Chinese enterprises and entrepreneurs are the mainstream in the future, especially in the fields of AI and biomedicine.
Sub - forum 2: VC's View on Macro Trends and Industry Strategies
Looking back on the past year, the slowdown of investment growth in the first three quarters is an inevitable phenomenon during the economic transformation period. The signal of structural optimization is more worthy of attention than the growth rate itself. The development of new - quality productive forces will continue to create new growth points. For some time, the VC industry as a whole has faced certain pressure in all aspects of fundraising, investment, management, and exit. It is difficult for LPs to raise funds, and the project cycles of VCs have been lengthened overall. In the face of multiple challenges at present, what coping strategies will leading VC institutions adopt? How to persevere and break through the situation? Against the backdrop of new globalization, with the continuous changes in the global industrial chain reconstruction, geopolitical frictions, and technological and trade barriers, how will the globalization strategies of Chinese VC institutions evolve? What will be the future of popular tracks (AI, robotics, energy, going - global, etc.) in the continuous adjustment and change of the capital market? Long Yu, the founding and managing partner of BAI Capital; Chen Hao, the vice - chairman of Legend Capital; Kuang Ziping, the founding managing partner of Qiming Venture Partners; Liu Erhai, the founding and executive partner of Joy Capital; Zhu Xiaohu, the managing partner of GSR Ventures; and Zhang Ruiyuan, a partner of Gao Rui Law Firm, expressed their unique insights in the discussion on the topic of "VC's View on Macro Trends and Industry Strategies".
Long Yu: I am full of confidence in China's comparative advantages. This year, I spent most of my time traveling between the United States, Europe, Latin America, and Southeast Asia, witnessing different scenes of the global economy. The challenges faced by China are relatively small, and it has been promoting innovation and progress at an amazing speed. China has a globally leading manufacturing foundation. Millions of small and medium - sized manufacturing enterprises have achieved a historic breakthrough in flexible manufacturing capabilities through digitalization and AI empowerment. China's market is vast, diverse, and complex, and there is no Niche Market. Chinese entrepreneurs are becoming more capable, driving the improvement of enterprise quality, which brings us more specific and structured opportunities.
Chen Hao: Facing China's economic transformation and technological competition between major powers, technological innovation is the main development direction for China in the future, and venture capital will become an important force in promoting technological innovation. After more than 20 years of the popularization and application of the Internet, including the mobile Internet, with the combination of "IT + artificial intelligence" and "developed manufacturing + artificial intelligence", the application of artificial intelligence in China will surely occupy a leading position in the world in the future.
Kuang Ziping: As a huge economy, China plays a crucial role in the world. In recent years, the comprehensive capabilities and entrepreneurial spirit of Chinese entrepreneurs have improved significantly, which have sent positive and optimistic signals. The AI and healthcare industries have broad prospects and are the key development areas in the future. This has become the consensus of people in the equity investment industry. At the same time, AI enterprises face a large demand for funds during their development, especially in infrastructure construction, R & D promotion, and large - scale expansion.
Liu Erhai: Technology and innovation are the continuous driving forces for social change. The influence of the network economy is obvious to all. The AI economy is not a simple continuation of the Internet economy but a more extensive leap in productivity, manifested as the transition from automation to autonomy. A new ecosystem of the AI economy is evolving, and "born - global" enterprises are emerging rapidly. There is still a large growth space for China's investment in the innovation field.
Zhu Xiaohu: In each sub - field, Chinese entrepreneurs are far ahead of entrepreneurs in other countries, and VCs still have many good investment opportunities. AI is about to welcome more opportunities at the application level. Chinese AI enterprises have huge advantages in the industrial chain and ecosystem and may create differentiated products to stand out.
Zhang Ruiyuan: Facing various challenges in the macro - economic situation and geopolitics, Chinese entrepreneurs and business operators have demonstrated the ability to respond quickly. Such spirit and ability make us full of confidence that the Chinese market can maintain good development. Chinese enterprises can also obtain more business opportunities by going global. Chinese products have upgraded from simple cost - effectiveness to having their own brand images, which can help open up new markets, establish a global corporate image, and achieve rapid development and growth. However, when going global, enterprises will also face many challenges, and it is very important to understand the local regulatory environment and operate in compliance.
Sub - forum 3: How LPs View Fundraising Strategies and Evaluate GPs
Currently, the Chinese private equity investment field is at a historical moment full of both opportunities and challenges. As important participants and witnesses of the industry's development, what new ideas do LPs have about investment strategies and tracks? When re - balancing the global and Asian asset allocation, what changes have occurred in the investment strategies and expected returns of US - dollar LPs in China? What suggestions do RMB LPs have for GPs' fundraising under the current tight market - based funds situation? Compared with the hot secondary market this year, what positive signals has the primary market released? Since last year, with the successive release of a series of favorable policies for foreign - funded equity investment in China, what expectations and suggestions do LPs have for regulatory authorities? Wang Daizong, a partner of TPG NewQuest; Fang Min, the managing director of Warburg Pincus and the co - president of private equity investment in China; Xia Mingchen, the managing director of HarbourVest Partners and the co - head of Asia - Pacific investment; Xu Qing, the managing partner of Yuanhe Kunlun; Zhang Bin, the deputy general manager and the general manager of the equity investment center of China Life Capital; and Chen Fang, a senior partner of Zhong Lun Law Firm, delved into the new directions of future investment and financing development in the forum themed "How LPs View Fundraising Strategies and Evaluate GPs".
Wang Daizong: The rapid development of technologies such as AI and the hot market in the secondary market this year have all released positive signals for the primary market. More merger and acquisition transaction opportunities and the continuous development of the S strategy have helped improve exit management and DPI. There is a lag effect when these positive changes at the investment and exit ends are transmitted to the fundraising end. At the same time, affected by geopolitics and the macro - environment, GPs still face challenges in fundraising, and the real turning point has not yet arrived.
Fang Min: The most important change in 2025 is that the capital market has restored its profit - making effect, and the Hong Kong stock market has played a good leading role. Its relatively loose IPO environment has brought excellent valuation performance beyond expectations to the robotics, AI tracks, and high - tech sectors. Globally, China is still in a very low - interest environment at present, which is an investment window period for merger and acquisition transactions. Targets with good cash flows have great growth space. However, the most core factor in the market is the fund performance return. Only when LPs can make money can we see the recovery of the entire market.
Xia Mingchen: Since the second half of this year, it is obvious that investors' sentiment is very good and more positive and optimistic compared with last year, which is inseparable from the good performance of the capital market. Although the returns of Chinese PE funds have not been fully improved compared with the peak in 2021, with the good performance of the secondary market this year, the positive effects will be gradually reflected next year. This is a very positive background change. The investment returns are reflected on the books, and the exits have also improved significantly. The fundraising environment has faced certain challenges and difficulties in the past few years, especially for US - dollar funds focusing on China. From the recent fundraising market observation, some leading US - dollar funds in China have successfully closed their latest funds from the second half of last year to this year, but the reduction of the scale of new funds is a common phenomenon.
Xu Qing: The Chinese equity market is welcoming a new era and will have different new opportunities. RMB LPs have clearly seen the rise of the Chinese merger and acquisition market. Early - stage innovative high - tech enterprises and the healthcare, consumption, and manufacturing sectors at the back - end are the focus of FOF funds. Currently, there are limited RMB teams engaged in mergers and acquisitions in China. The teams that enter now will have better attempts and more growth space in the future merger and acquisition market. Starting next year, the amount of RMB funds will be very abundant. We will face core capital sources from the government and state - owned assets, which will put forward different requirements for GPs. GPs need to consider what changes and adjustments to make in the current environment to adapt to the macro - changes in the entire market.
Zhang Bin: The biggest change this year is that at the macro level, "building the country through science and technology" is no longer just a slogan but is becoming a reality. At the meso - level, the industry has recovered, which can be verified by data and experience. At the micro - level, as a GP using insurance funds, the number and scale of projects we invested in this year are nearly three times that of last year, mainly focusing on the implementation of emerging industries and bottleneck - restricting fields. Regarding the fundraising strategies of GPs, it is recommended to expand diversified channels and have a deep understanding of the needs of insurance funds.
Chen Fang: Insurance funds are one of the main investors in RMB funds. The compliance standards of insurance funds will have certain requirements for GPs in terms of information disclosure and access thresholds. For example, when foreign - funded GPs first enter the Chinese market, they need to accumulate sufficient AUM to raise insurance funds. Industrial investors are playing an increasingly important role in the fundraising of RMB funds. Many GPs will cooperate with leading enterprises in relevant industries to establish industry - specific funds. The cooperation between such industrial investors and GPs not only brings funds but also professional technical support.