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China’s state capital grows dominant role in private tech funding

State-affiliated investors supplied more than 90.0% of committed private-equity capital tracked in China last year, up from just under 79.0% in 2021.

Reported · Written up by our desk · China

China’s frontier technology funding is increasingly shaped by the state, according to SCMP Economy, as projects spanning AI and hardware increasingly trace back to government-linked investors rather than traditional venture capital and domestic private wealth.

The outlet says Beijing’s public capital reaches the market through a layered structure that can include national funds, local investment vehicles, state-owned enterprises, and privately managed funds, effectively turning policy priorities into private-market bets.

SCMP Economy also cites domestic data from Zerone showing state-affiliated investors supplied more than 90.0% of committed capital tracked in China’s private-equity market last year, rising from just under 79.0% in 2021.

It adds that the push aligns with remarks from President Xi Jinping at a national science and technology gathering in Beijing on July 8, when he urged financial capital firms to invest early, invest small, invest for the long term, and invest in hard technology, with the deployment of this capital seen as pivotal to China’s self-reliance goals.

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