US dollar funds have become active again.
US dollar funds have restarted their recruitment plans, and foreign LPs have reignited their enthusiasm for investment...
The continuous release of policy dividends and technological breakthroughs of technology companies are driving international capital to recalibrate the strategic weight of Chinese assets.
Recently, partners of several institutions said, "This year, we have been intensively receiving foreign family offices. We can clearly feel the recognition of foreign LPs for China's scientific and technological innovation strength and asset value."
Meanwhile, there are also undercurrents in the recruitment market of the primary market. According to our observation, several dual-currency funds have restarted their recruitment plans for US dollar IR positions this year.
Foreign capital that has been dormant for several years is revaluing Chinese assets through real investment.
US dollar funds are becoming active again
The gate of foreign capital in the primary market is reopening driven by both policy dividends and technological breakthroughs.
After several years of adjustment, China's venture capital circle is regaining its vitality. Since 2025, the recovery signals in the primary market have become more obvious.
According to data from FOFWEEKLY, in June 2025, the investment activity of industrial LPs increased by 14% month-on-month. Among them, non-listed companies were particularly prominent, with their investment activity increasing by 17% month-on-month, ranking first among all types of LPs in terms of growth rate. The filing of new funds has also heated up simultaneously. According to statistics, from March to May this year, both the number and scale of newly filed funds increased year-on-year. In June, 409 newly filed private equity and venture capital funds were recorded, a surge of 61.02% compared with the same period last year.
"This is not just a data rebound, but a substantial restoration of market confidence," said the person in charge of a fund of funds, pointing out that capital agglomeration effects are forming in sectors such as artificial intelligence and robotics.
The market recovery combined with policy dividends is driving foreign capital to regain its enthusiasm for China. US dollar funds are visibly becoming more active.
According to Bloomberg, six VC institutions rooted in the Chinese mainland are simultaneously launching a new round of US dollar fund raising, with a total target scale of at least $2 billion.
There have also been significant changes in talent recruitment.
According to our observation, since Q2 2025, several US dollar funds or dual-currency funds have restarted the recruitment of key positions that have been frozen for three years, mainly IR positions. The institutions' future in-depth development plans mainly include regions such as Southeast Asia and the Middle East.
It is worth noting that several RMB funds have also added US dollar IR positions and plan to raise US dollar funds.
A partner of an institution said frankly, "When technological breakthroughs meet institutional innovation, China is becoming a value depression that long-term capital cannot afford to miss. This is exactly the core reason for foreign capital to regain its enthusiasm."
Amid the profound adjustment of the global economic landscape, the trend of "the East rising and the West falling" is no longer just a strategic consensus within China, but is gradually becoming a real portrayal of the global capital market. With the effects of technological breakthroughs and policy dividends becoming more prominent, they are jointly driving foreign capital to "re-recognize" the Chinese market.
The return of foreign LPs
2025 is increasingly regarded by the industry as a key turning point for foreign capital to layout in China.
Looking back on the past few years, affected by multiple factors, foreign capital's willingness to invest in the Chinese market was once in a slump. However, a turning point is taking place: the continuous release of policy dividends and major breakthroughs in local technological innovation are significantly boosting foreign capital's confidence. Many market participants reported that since 2025, foreign LPs' interest in allocating Chinese assets has shown a strong recovery trend.
At the beginning of the year, Han Yan, the founding partner of Heartland Capital, said frankly in an interview with the media, "I just received a group of representatives from well-known family offices in Southeast Asia. These Southeast Asian capitals that are well-versed in Chinese culture highly recognize China's scientific and technological innovation strength and asset value. There have been significantly more in-depth exchanges and on-site inspections with us recently."
Coincidentally, Zhang Jiang, the founder and CEO of LongRiver Investment, also said frankly that he has continuously received several groups of foreign institutions for research, and the visitors are all senior executives at the CEO and CFO levels. Some foreign LPs who have not been to China for many years have also conducted intensive research on the Chinese market in recent months.
The change in the attitude of overseas investors is not only reflected in the warming of investment willingness but also in the acceleration of actual actions. Foreign LPs are deeply integrating into the Chinese private equity market by setting up local offices, participating in the raising of RMB funds, and using policy tools such as QFLP, forming a complete path from perception to action.
According to our observation, in the past two years, several global PE giants have begun to accelerate their layout in the Chinese market, including setting up fund managers and funds in China.
On July 11, Kaide Shipu (Shanghai) Private Equity Investment Fund Partnership (Limited Partnership) completed its filing with the Asset Management Association of China. The LPs include Singapore's Cao Baoji and Schroder. In May, CapitaLand Investment announced the establishment of its first onshore fund of funds in China, with a scale of 5 billion yuan, introducing domestic insurance giants as anchor investors. In addition, Temasek's Temasek Ming Capital and Anade Capital have also successively completed the registration of private fund managers in China.
Against the background of the reshaping of the global capital pattern, foreign LPs are quietly accelerating their layout in the Chinese market. This not only reflects their recognition of China's economic potential but also a profound response to the global economic trend of "the East rising and the West falling," and an "evolution" of their own perception and iteration.
"In the current market environment, it is obviously unrealistic to ignore the Chinese market," said a senior investor. "Since the end of 2024, we have clearly felt that overseas investors' attention to Chinese assets has been substantially increasing, especially their attention to hard technology companies such as AI and robotics." According to him, since 2025, several top international LPs have officially restarted or launched a new round of allocation plans for Chinese funds.
As Wu Yibing, the Chairman of Temasek China, emphasized, "We are long-term optimistic about the resilience and potential of the Chinese economy and will continue to invest in the Chinese market."
Conclusion
When US dollar funds restart their recruitment plans and foreign LPs reignite their enthusiasm for investment - foreign capital's allocation of Chinese assets is shifting from waiting and seeing to "tentative return."
In the global asset allocation map, the growth opportunities driven by China's new productive forces are becoming increasingly difficult to ignore. In the future, with the continuous effect of policies and technological dividends, foreign LPs' investment in China is expected to be more in - depth and extensive.
This article is from the WeChat official account "FOFWEEKLY." Author: FOFWEEKLY. Republished by 36Kr with permission.