"Super LPs" are making intensive capital contributions

The state-backed patient capital has taken another solid step in its layout.

As abundant capital flows into the primary market and its popularity continues to rise, a number of national-level "super LPs" are further accelerating their capital contribution pace.

Since the beginning of this year, this type of patient long-term capital has been deployed intensively across the country, steadily expanding westward, and its capital territory keeps growing.

100 Billion Yuan! Another Social Security Science and Technology Innovation Fund is Launched

Recently, Shaanxi Social Security Science and Technology Innovation Equity Investment Fund Partnership (Limited Partnership) has completed industrial and commercial registration, with a total contribution of 100 billion yuan. Its business scope includes activities such as equity investment, investment management and asset management conducted in the form of private equity funds.

Equity penetration information shows that this enterprise is jointly funded by the National Council for Social Security Fund, BOC Financial Asset Investment Co., Ltd., BOC Capital Private Equity Fund Management (Beijing) Co., Ltd., Xi'an High-tech Industrial Venture Capital Co., Ltd., Chang'an Huitong Group Co., Ltd., and Chang'an Huitong Private Equity Fund Management Co., Ltd.

It is reported that the fund will focus on key sectors including new materials, semiconductors, aerospace, high-end equipment manufacturing, new-generation information technology, and artificial intelligence. Among all investors, Xi'an High-tech Financial Control invested 1.5 billion yuan on behalf of Xi'an High-tech Zone, accounting for 15% of the total, making it the first national development zone entity to participate in a national-level social security science and technology innovation fund.

Looking back at its first public appearance, the Shaanxi Social Security Science and Technology Innovation Equity Investment Fund (Phase I) was officially signed in Xi'an on June 17, 2026. The signing ceremony was of high standard: Zhao Yide, Secretary of the Shaanxi Provincial Party Committee, Zhao Gang, Governor of Shaanxi Province, Liu Kun, Chairman of the National Council for Social Security Fund, and Ge Haijiao, Chairman of the Bank of China, jointly witnessed the signing and unveiled the fund. It only took about one and a half months from signing to registration, which is an extremely fast progress pace.

It is worth noting that this fund is the sixth social security science and technology innovation fund nationwide, and also the first one in Northwest China. As the core region of Northwest China, Shaanxi boasts strong scientific research resources in the fields of aerospace, hard technology and advanced materials, gathers a large number of universities, scientific research institutes and national key laboratories, and has the potential to cultivate a number of leading hard technology enterprises. This deployment of the social security fund in Shaanxi marks a major step of national long-term capital toward Northwest China.

However, this is just the tip of the iceberg. The science and technology innovation layout of social security funds is spreading across the country at an amazing speed.

In the second half of 2025, Zhejiang Social Security Science and Technology Innovation Fund was established with an initial scale of 500 billion yuan. After that, Jiangsu, Fujian, Hubei and Sichuan followed up one after another, and the total scale of the five funds reached 1.6 trillion yuan.

In July this year, another important signal was released. The Office of the Financial Committee of the CPC Shanghai Municipal Committee, the Shanghai Municipal Development and Reform Commission and other departments issued the *Several Measures for Shanghai to Give Full Play to the Function of Direct Financing and Further Strengthen Sci-tech Financial Services*, which proposed to strengthen the leading role of state-owned capital and accelerate the establishment of the Shanghai Social Security Science and Technology Innovation Fund.

Previously, there had long been signals of cooperation between Shanghai and the National Council for Social Security Fund. On March 24, Shanghai and the National Council for Social Security Fund signed an agreement to establish the SDIC Sci-tech Innovation Fund, with a scale of 100 billion yuan, which is jointly formed by the National Council for Social Security Fund, State Development & Investment Corporation, China Construction Bank, Bank of Communications, Shanghai State-owned Investment Co., Ltd. and Pudong Venture Capital.

National-level Long-term Capital is Accelerating Its Deployment

The primary market is entering an era of "long-term capital".

Entering 2026, the capital contribution pace of the state-backed teams has further accelerated. According to FOFWEEKY research data, in June, the capital contribution activity of institutional LPs rose 22.1% month on month and increased 64.2% year on year, marking one of the highest single-month activity levels in the first half of 2026. Among them, the absolute volume of capital contribution activity of policy-oriented LPs remains at a historically high level, with a total scale of about 87.4 billion yuan, accounting for about 61% of the whole market, which is further increased compared with that in May. The average single contribution amount is 190 million yuan, 5.5 times that of industrial LPs and 3.4 times that of financial LPs.

According to our observation, the allocation granularity of national-level long-term capital in June is finer, while the direction is more clear. The Social Security Fund Bay Area Sci-tech Innovation Equity Investment Fund (Shenzhen) contributed 1.02 billion yuan to participate in the Shenzhen Venture Capital Hongtu Sci-tech Strategic Investment Fund, and the Social Security Fund Yangtze River Delta Sci-tech Innovation Equity Investment Fund (Shanghai) contributed 200 million yuan to participate in the Shanghai Shuyuan Zhixin Venture Capital Fund -- the social security sci-tech innovation fund series has completed its deployment in the Yangtze River Delta and Guangdong-Hong Kong-Macao Greater Bay Area.

The intensive deployment of social security funds is only a part of the full-scale effort of the state-backed patient capital. Looking at a broader picture, national guidance funds and central SOE industrial funds are forming a joint force, and a larger-scale capital layout is unfolding at an accelerated pace.

In terms of national guidance funds, the three regional funds under the National Venture Capital Guidance Fund covering Beijing-Tianjin-Hebei region, Yangtze River Delta and Guangdong-Hong Kong-Macao Greater Bay Area have all been established. In June, the Beijing-Tianjin-Hebei Fund has reached cooperation intentions with 9 sub-fund management institutions; in May, the first sub-fund of the Yangtze River Delta Fund in Jiangsu -- Nanjing Yaotu Phase IV Venture Capital Fund -- completed its capital contribution.

Looking at central SOE-affiliated funds, on July 28, the first sub-fund of Chengtong Sci-tech Innovation Jiangsu Fund -- CNNC (Jiangsu) Strategic Emerging Industry Venture Capital Fund completed industrial and commercial registration, with a total scale of 2.7 billion yuan. It is jointly funded by China National Nuclear Corporation together with Chengtong Sci-tech Innovation and other investors, focusing on fields including nuclear power, nuclear technology application, new energy and new materials.

At the same time, the market-highlighted trillion-yuan level M&A fund is still in preparation. During the 2026 National Two Sessions, Zheng Shanjie, Director of the National Development and Reform Commission, clearly stated that the NDRC will work with the Ministry of Finance, the People's Bank of China and other departments to establish a national-level M&A fund, which is expected to leverage various types of capital of more than 1 trillion yuan.

The intensive deployment of national-level long-term capital is becoming the core driving force for the high-quality development of the current primary market. On the one hand, the continuous injection of patient capital eases the fundraising pressure of market-oriented institutions. On the other hand, the current primary market sees concentrated popularity, with hard technology becoming the main investment track, and a large amount of capital pouring into a few star projects and leading tracks. Hard technology generally features long R&D cycles and high capital consumption, which exactly fits the allocation logic of the state-backed long-term capital.

An industry insider commented on this: "The next few years will be an important window period for national-level fund contribution, which is expected to fill 20%–30% of the market-oriented capital gap for GPs. This may even promote the emergence of a number of new-generation GPs."

At the same time, local state-backed funds across the country continue to optimize their mechanisms, and relax rigid constraints in terms of duration, registration place, and return investment assessment.

The 10-billion-yuan central SOE strategic emerging industry fund, Chengtong Sci-tech Innovation Investment Fund (Jiangsu) Co., Ltd., has set a duration of 15 years, and the three major national venture capital guidance funds have even extended the duration to 20 years. In addition, Luoyang Angel Fund of Funds, Shanghai Future Industry Fund, and special fund of funds in many regions of Jiangsu have clearly set their duration to 15 years or even 20 years. Meanwhile, Shenzhen and Shaanxi have successively launched the attempt of "no fixed duration", which truly builds a "long-term capital" ecosystem.

In addition to the extension of duration, "risk sharing" has also become a major trend. Since 2025, various provinces and cities have issued measures including innovative due diligence and fault tolerance, long-cycle differentiated assessment, and classified exit, to maximize the enthusiasm for investment and innovation vitality of market entities. Sichuan, Shaanxi, Hubei, Shandong and many other regions have also successively proposed to establish the due diligence exemption mechanism for government guidance funds, and the maximum loss tolerance rate in some regions can reach 100%.

With the improvement of the fault tolerance rate of guidance funds and more flexible return investment rules, government investment funds have shifted from "scale expansion" to "mechanism reshaping", which truly enables long-term capital to invest boldly.

Conclusion

The intensive launch of state-backed funds is injecting a rare sense of certainty into the primary market.

After all, the boom of hard technology investment cannot only rely on phased market trends, but also requires the mutual adaptation of capital cycles and innovation cycles. The injection of long-term capital such as social security funds, guidance funds and central SOE industrial funds is consolidating the foundation of hard technology investment in the primary market, making capital truly match the growth rhythm of technology, and delivering stable and continuous support for local technological breakthroughs.

This article is from the WeChat official account "FOFWEEKLY", author: Huang Rong, published with authorization from 36Kr.