LPGP Discusses New Industry Ecosystem: The 19th China LP/GP Summit Successfully Concludes in Shanghai

From July 3–4, 2025, the 19th China Fund Partners Conference, hosted by Zero2IPO Group (01945.HK) and its platform Pedaily, was successfully held in Shanghai. The event brought together more than 500 representatives from leading fund-of-funds (FOFs), government guidance funds, insurance capital, affluent families, and VC/PE institutions, who collectively managed trillions in capital to engage in in-depth discussions on the challenges, opportunities, and evolutionary pathways for the equity investment industry in the new economic cycle.

Through keynote speeches, high-level dialogues, roundtable forums, closed-door seminars, and LP & GP matchmaking sessions, the conference has established a precise platform for intellectual exchange and resource connectivity within the industry.

At the event, Ni Zhengdong, Founder and Chairman of Zero2IPO Group and CEO of Zero2IPO Ventures, delivered remarks as the host. He stated, “Based on data disclosed by various firms, the total investment amount in China’s equity investment market exceeded RMB 130 billion in the first quarter of 2025, with the number of investment deals rising by 12.2%—marking the first return to positive growth in nearly three years. However, the total investment amount still declined significantly, indicating that investors are more active in early-stage investments. Regardless, the increase in the number of deals is a positive signal, suggesting that the market is recovering.” Subsequently, panelists engaged in a dialogue centered on “Shifts in the Logic of China’s Equity Investment Market.” Zhang Jian, Vice President of Shenzhen Capital Group (SCGC), shared his observations: “Since the establishment of China Venturetech Investment Corporation in 1985, China’s venture capital industry has developed for 40 years. The overall investment logic of the industry has gradually shifted from emphasizing financial analysis to focusing more on technological barriers, disruptiveness, and sustainability; from pursuing short-term returns to emphasizing long-term partnership, deep-level services, and professional empowerment; and from validating business models to paying greater attention to pathways for technology commercialization, the authenticity of application scenarios, and their practical value.” Addressing the issue of inflection points in the primary market, Li Wei, Founding Partner of Sinopharm Capital, remarked, “The market is indeed recovering, but I believe the inflection point has not yet arrived. It is akin to descending stairs, where one pauses briefly before taking another step down. We are currently in a minor plateau phase, with potential for slow upward movement. Only by sustaining this trend can the true inflection point be reached.” In response to the market situation in 2025, characterized by stabilization in fundraising and continued activity from large state-owned funds, the session titled “Where Is the ‘Living Water’?” focused on breaking bottlenecks at the source of capital. Li Xinjian, General Manager of Shenzhen Angel Investment Guidance Fund Management Co., Ltd., stated, “Currently, the proportion of state-owned limited partners (LPs) is excessively high, which creates a crowding-out effect on genuine ‘living water’ from social capital. Only by integrating state-owned LPs with authentic private capital can venture capital return to its roots, deliver higher returns to LPs, and better support the development of the real economy through market-oriented mechanisms.”

Beyond fundraising challenges, exit strategies have emerged as another critical issue. Addressing the “remedy for exits in the primary market,” Li Haojun, Managing Partner at GGV Capital, stated, “As exit pathways become less predictable, our investment decision-making framework must adapt accordingly. With the growing importance of industrial resources, we need to approach emerging sectors with an ‘incubation’ mindset. Rather than merely evaluating opportunities and technological merits, greater emphasis is now placed on the integration of IPOs with industry dynamics and the potential for industrial capitalization.” Zhu Jia, Partner at Lightspeed China Partners, shared, “As GPs, we cannot rely on policy changes to accommodate us. The fundamental priority remains investing in high-quality assets and ultimately realizing their value. From a long-term perspective, VC/PE firms must depend on premium assets to enhance overall fund returns, which is a core responsibility that GPs must fulfill.”

As the private equity industry enters a new cycle, past industry experience is no longer applicable, and investment strategies urgently require strategic adjustments. On this topic, Zhou Yu, Head of the Healthcare Investment Department at Huatai Zijin Investment, shared: “From an investment perspective, I believe this cycle is entirely inevitable. The earlier bubbles and troughs serve as guidance for investment, reinforcing investment discipline and standards. Looking beyond the current cycle to next year, the year after, and even further into the future, proactive consideration holds greater significance for us.”Sun Qi, Founding Managing Partner of Daotong Investment, stated: “In the current environment with fewer opportunities, investments need to focus on niche sectors, requiring revolutionary technological innovation. Selecting projects will become increasingly challenging, necessitating more rigorous screening. Furthermore, founders must possess comprehensive capabilities; relying solely on technological highlights is far from sufficient—they must also be adept at leveraging various resources.”In the first quarter of 2025, semiconductors and electronic equipment led in market热度 (interest/activity), with sustained attention on hard technology sectors. Addressing how industrial investment should evolve accordingly, Liu Kui, Deputy General Manager of Shandong New Kinetic Energy Fund Management Co., Ltd., emphasized the importance of leadership by leading enterprises. He stated, “Government guidance funds alone struggle to effectively promote industrial clustering. It is essential to join forces with industrial players and Corporate Venture Capital (CVC). By leveraging leading enterprises to drive industrial clustering, we can simultaneously explore viable pathways for guidance funds to achieve successful deployment and exit (‘investable and recoverable’), thereby promoting the sustainable development of industrial chains and upgrades.”Wang Yan, Deputy General Manager of Anhui High-Tech Industry Investment Co., Ltd., remarked: “From the perspective of private equity, the underlying logic lies in identifying high-quality assets, structuring sound deals, and determining appropriate valuations. From the standpoint of government guidance funds and private equity positioned to nurture, lead, and integrate industries, it is equally crucial to base decisions on growth-oriented assets, valuations with profit margins, and transaction structures with risk-balancing measures. Only then can we harness the combined value of effective markets and proactive government, forming a closed-loop system with liquidity and integrated investment and exit mechanisms. This constitutes the mission and core competitiveness of state-owned investment platforms.”

In the current landscape of limited partner (LP) capital, government and state-owned capital play a dominant role. Central and local governments continue to explore fault-tolerance and liability-exemption mechanisms to cultivate long-term, patient capital. The conference featured a session titled “LPs & GPs: Jointly Cultivating Patient Capital.” Fang Min, Managing Director and Co-President of Private Equity in China at Warburg Pincus, commented, “Over the past few years, government guidance funds have not only injected vital resources into industrial development but also provided crucial support to portfolio companies during challenging times, playing a significant role at critical junctures. Today, as the market environment gradually improves, particularly with the reopening of IPO channels and the progressive smoothing of exit pathways, we believe that mutually beneficial cooperation between both parties will achieve steady and long-term success, writing a better chapter together. In the new stage of transformation and upgrading in the Chinese market, Warburg Pincus remains committed to empowering local innovation with global resources and selecting high-quality targets through professional expertise, aiming to collaborate with more outstanding entrepreneurs to create greater value.” Zhang Binbin, Director and General Manager of Jinan Financial Holdings Group, also shared, “The relationship between GPs and LPs has evolved in recent years, shifting from rapidly expanding networks to intensive, refined engagement. This change is driven by economic and policy environments. Overall, the collaboration between GPs and LPs is becoming increasingly close.” The conference hosted closed-door seminars on government investment funds and matchmaking sessions for LPs and GPs, significantly enhancing communication efficiency and the quality of resource alignment between fundraisers and investors, earning consistent acclaim from attendees.

The 19th China Fund Partners Conference has concluded successfully. The forward-looking insights and practical experience shared by attendees have provided valuable strategic references for the industry. Efficient, pragmatic matchmaking and in-depth exchanges have built a solid bridge for the collaborative evolution of Limited Partners (LPs) and General Partners (GPs) in the new cycle. Looking ahead, the China Fund Partners Conference will continue to stand firmly alongside the industry, joining forces with all stakeholders to explore new investment paradigms amid the industry’s emerging waves, navigate through cycles, and achieve steady, long-term growth.