300 billion: Zhejiang state-owned assets take major measures.
According to Jiemi LP of the investment community, at the recent Industrial Investment Ecosystem Construction Conference, Zhejiang Province officially launched three hundred-billion-level fund clusters: the "New Productivity Fund for Scientific and Technological Innovation", the "Industrial Structure Optimization and Adjustment Fund for State-owned Enterprises", and the "High-quality Development Fund for Listed Companies".
With this move, the "Zhejiang Model" has gained new impetus. These three fund clusters are spearheaded by the Zhejiang Provincial State-owned Capital Operation Co., Ltd., the sole provincial-level state-owned capital operation platform in Zhejiang. The first batch of funds, approximately 15 billion yuan, is now in the final stages of agreement signing and registration.
When industries thrive, the economy prospers. Looking around, the competition among local governments to develop emerging industries is intensifying.
Zhejiang State-owned Capital Leads the Way with Three Hundred-billion Funds
They have officially made their debut.
First, in terms of functional positioning, the three hundred-billion fund clusters in Zhejiang each have their own focuses. The New Productivity Fund for Scientific and Technological Innovation is centered around Zhejiang's strategic emerging industries and future industries. It directly invests in early and mid-stage innovation projects in fields such as integrated circuits, high-end equipment, new materials, and medical engineering and pharmaceuticals. Meanwhile, it coordinates the transformation needs of provincial state-owned enterprises with the achievement transformation of universities and research institutes.
The Industrial Structure Optimization and Adjustment Fund emphasizes the optimization of state-owned capital layout. Through mergers and acquisitions, horizontal collaboration, and other means, it invests in strategic emerging industry projects, coordinates asset acquisitions and reorganizations of provincial state-owned enterprises, and integrates the existing state-owned industrial layout, thereby enhancing the core competitiveness of Zhejiang's state-owned assets and enterprises.
The High-quality Development Fund for Listed Companies focuses on value investment in high-quality listed companies within the province. Through direct investment, strategic placement in IPOs, private placements, mergers and acquisitions, and other methods, it assists enterprises in market value management, extending and supplementing industrial chains, and enhancing their ability to withstand economic cycles, thus promoting the stable development of the regional capital market.
As the sole provincial-level state-owned capital operation platform in Zhejiang, the Zhejiang Provincial State-owned Capital Operation Co., Ltd. (hereinafter referred to as the "Provincial State-owned Capital Company") takes the lead in the establishment of these three hundred-billion funds. It is understood that the Provincial State-owned Capital Company has been deeply involved in the industrial fund field for many years. Currently, it actively manages funds with a scale of over 80 billion yuan, has cumulatively leveraged over 200 billion yuan of social capital, has invested in over 270 strategic emerging industry projects with a total investment of over 20 billion yuan, has incubated over 150 high-tech enterprises and nearly 120 specialized and sophisticated enterprises with unique features, basically covering all the iconic industrial chains in the province and the entire life cycle of enterprises.
"Using a diverse and comprehensive fund cluster as a tool to increase investment in strategic emerging industries and promote the 'supplementing, strengthening, and extending' of key industrial chains is one of the important means for Zhejiang's state-owned capital to support the development of new productivity," said Jiang Yangjian, the chairman of the Provincial State-owned Capital Company. The three fund clusters will jointly form a capital support chain that covers the entire life cycle of enterprises from "start-up - growth - maturity - integration".
It is worth noting that all three fund clusters adopt a market-oriented mechanism to ensure efficient operation. The funds are independently initiated through market-oriented fundraising. Market-oriented innovative models are also fully implemented in investment management assessment, fault-tolerant mechanisms, and post-investment management.
At the conference, 24 proposed investment projects were signed, mainly covering cutting-edge fields such as integrated circuits, low-altitude economy, and humanoid robots. The professional platform under the Provincial State-owned Capital Company also signed cooperation agreements with large financial central enterprise platforms such as ICBC Asset Management and Cinda Capital, as well as local state-owned capital platforms in Hangzhou, Ningbo, Lishui, Taizhou, Jinhua, and Huzhou. According to preliminary estimates, the first batch of signed projects is expected to drive over 20 billion yuan of social capital investment.
"By using the three hundred-billion fund clusters as a link, we will accelerate the aggregation of industries, capital, and high-quality internal and external resources," revealed Jiang Yangjian. The company plans to reach a scale of over 100 billion yuan in actively managed funds by the end of the 15th Five-Year Plan period, further attracting and leveraging social capital to support the high-quality development of Zhejiang's economy, and providing strong capital impetus and innovation support for the accelerated construction of an innovative Zhejiang and the establishment of a modern industrial system with Zhejiang characteristics.
The City Competition
With the rise of technology companies such as DeepSeek, Unitree Robotics, Q-brain, and Rokid, the question of "Why Zhejiang?" has been widely discussed across the country.
Looking back, Zhejiang has been very active in the venture capital industry. The Zhejiang Provincial Industrial Fund is particularly impressive. It has not only invested in star technology companies such as Unitree Robotics, Q-brain, Deep Robotics, and GroupMap, but also supported 90 listed companies in the province, 24 of which have won national and provincial science and technology awards. As of now, the provincial industrial fund has cumulatively committed nearly 60 billion yuan through circular investment, invested in over 1,600 projects within the province, and leveraged 545.9 billion yuan of various capital. Among them, there are 15 large projects with a total investment of over 5 billion yuan.
In 2023, the Zhejiang Provincial Industrial Fund innovatively launched the "4 + 1" special fund model, which includes four industrial cluster special funds for new-generation information technology, high-end equipment, modern consumption and health, and green petrochemicals and new materials, as well as a "specialized and sophisticated" mother fund. This is an important measure to support the cultivation of Zhejiang's "415X" advanced manufacturing clusters and serve the high-quality development of the economy. In the first half of this year, investment decisions were made on 7.649 billion yuan. According to the annual target of 15 billion yuan, it is expected to achieve the phased goal of "half of the time, half of the tasks completed".
As an important part of the "4 + 1" special fund cluster, the Zhejiang Provincial Science and Technology Innovation Mother Fund started its investment operations in September 2023. As of the first quarter of this year, it has formed a science and technology innovation mother fund system with a total committed scale of 11 billion yuan in three phases, and has cumulatively made investment decisions on 37 sub-funds and 4 direct investment projects.
Looking at the map of Zhejiang, local venture capital is also booming. For example, Hangzhou has established three mother funds: the Hangzhou Science and Technology Innovation Fund, the Hangzhou Innovation Fund, and the Hangzhou Merger and Acquisition Fund, forming a "3 + N" Hangzhou industrial fund cluster with a total scale of over 300 billion yuan. Meanwhile, mother funds in Wenzhou, Ningbo, Taizhou, Shaoxing, and other places are competing to select general partners (GPs).
As a result, VC/PE firms are flocking to Zhejiang to raise funds and invest in projects. According to a report by the Zero2IPO Research Center, in the first half of 2025, Zhejiang ranked first in both the number and scale of newly raised funds. A total of 447 funds completed a new round of fundraising, a year-on-year increase of 15.8%. The fundraising scale exceeded 100 billion yuan, a year-on-year increase of 26.0%.
In terms of investment, Zhejiang ranked third in the country with 682 investment cases and fourth in terms of investment amount, reaching 38.127 billion yuan. The number of investment cases in the IT, biotechnology, and semiconductor industries all exceeded 100.
This scenario is just a microcosm of the competition among local governments to develop emerging industries.
Behind a city with a high level of innovation vitality, there is often the support of venture capital. For example, Shanghai has three leading industry mother funds with a scale of nearly 100 billion yuan and a hundred-billion future industry fund. Beijing has established a government investment fund with a total scale of 100 billion yuan, which invests in fields such as robotics, information technology, artificial intelligence, and medical and health. Hong Kong has the Hong Kong Investment Corporation with a management scale of HK$62 billion, known as the "Hong Kong version of Temasek". Shenzhen is cultivating a trillion-level "20 + 8" industrial fund cluster...
It is obvious that the eagerness of cities to develop emerging industries is evident from the establishment of these super industrial funds.
The reason is easy to understand - when venture capital thrives, industries prosper, and when industries prosper, cities become stronger. In the new wave of industrial transformation, a competition that will determine the fate of cities is underway.
This article is from the WeChat public account "Jiemi LP". The author is Zhou Jiali. It is published by 36Kr with permission.