context: A push for ‘patient capital’ has been underway since 2023. It was identified as essential to ‘building a financial power’ at the October 2023 Central Financial Work Conference. The State Council released Guiding Opinions on promoting high-quality development of government investment funds on 7 January 2025. The PRC’s first national venture capital guidance fund was launched in 2007 with an initial C¥1 bn investment to support tech SMEs.
A national venture capital guidance fund to propel innovative enterprises towards leadership will soon be launched, says Zheng Shanjie 郑栅洁 National Development and Reform Commission director, noting it follows a strategic priority to cultivate and expand the industries of tomorrow.
The fund will seek to mobilise C¥1 tn of local and private capital, strategically targeting deep technology with a long-term investment approach. It will foster a culture of calculated risk, using market-oriented approaches to empower technology companies. The government will also enhance M&A policies and exit mechanisms to encourage private capital participation, ensuring a more efficient technology, industry and supply chain ecosystem.
Experts see it as a strategic move to revitalise entrepreneurship and investment confidence, addressing challenges faced by private venture funds in backing early-stage tech projects, notes Bejing Business Today.
It will focus on AI, quantum technology, hydrogen storage and other cutting-edge sectors, primarily investing in seed and early-stage startups, while also supporting SMEs in early and mid-stages. This aligns with the PRC’s goal of advancing disruptive innovations and key technologies.
Industries like biomanufacturing, embodied intelligence and 6G, mentioned in the Government Work Report, are also within its investment scope.