Investment New Era: The 24th China Private Equity Annual Conference Leads the Future of the Industry

The 24th China Equity Investment Annual Conference, guided by the Office of the Financial Commission of the Chongqing Municipal Committee of the Communist Party of China, hosted by Zero2IPO and PEdaily, and co-hosted by Chongqing Yufu Holding Group, concluded successfully in Chongqing on December 10–11, 2024. The event brought together numerous leading figures and industry elites from the investment community to exchange venture capital insights and jointly chart a new course for the era.

In 2024, the venture capital and private equity industry benefited from a series of favorable policy measures, with “patient capital” emerging as a key industry buzzword. RMB-denominated investments continued to dominate, while state-owned institutions sustained their strong momentum. Meanwhile, the sector underwent profound transformations, accompanied by intensified consolidation. Against this backdrop, the conference, themed “Cultivating New Growth Amidst Diverse Landscapes,” joined hands with industry peers to usher in a new chapter for equity investment, featuring numerous highlights on site.

The growth of patient capital serves as a crucial foundation for supporting technological innovation and acts as a key driver for promoting technological advancement and industrial upgrading. Characterized by its forward-looking perspective, trend insights, and brand building, this conference gathered the power of venture capital and private equity, featuring an impressive lineup of industry leaders. Prominent guests included Jixun Fu, Managing Partner at GGV Capital; Zuping Kuang, Founding Managing Partner at Qiming Venture Partners; Liang Li, Founding Partner at Hillhouse; Jiaqing Li, President at Legend Capital; Bing Xiao, Executive Partner and Chief Investment Officer at Fortune Capital; and Kui Zhou, Partner at Sequoia China. Over the course of two days, the event mobilized trillions in capital and was structured around four thematic chapters: “Surging Tide,” “Proactive Action,” “Foresight,” and “Breaking Waves.” Through keynote speeches, roundtable discussions, and closed-door exchanges, participants engaged in high-level dialogues amidst a vibrant atmosphere, fully demonstrating the professional depth and broad scope of communication characteristic of this premier industry conference.

On the morning of the 10th, the conference officially commenced. Ni Zhengdong, Founder and Chairman of Zero2IPO Group and CEO of Zero2IPO Ventures, delivered a speech as the host and simultaneously released the "2024 China Equity Investment Development Report," which reviews and outlines the industry landscape while interpreting market development trends. He stated, “In the first three quarters of 2024, 80 new fund managers were registered, while 800 were deregistered; more than 3,000 new funds were filed, but over 1,800 filings were canceled during the same period. This scenario indicates that China’s equity investment industry has entered an adjustment period, accompanied by significant consolidation. This also signifies that the industry is moving towards a stage of high-quality development.” In addition, the "2024 China Equity Investment Annual Rankings" were prominently unveiled at the event. The rankings encompass four major categories—comprehensive VC/PE, industry-specific, outstanding cases and corporate awards, and intermediary institutions—comprising dozens of lists that comprehensively showcase market development status and the competitive landscape.

Ying Wenlu, Chairman of Yida Capital, shared his views on the topic of “New Perspectives on Building Core Competencies for GPs in the New Era” during his keynote speech. He stated, “At present, it is essential to effectively manage the ‘three attributes’ of funds: profitability, safety, and liquidity. When managing substantial capital from state-owned limited partners (LPs), preserving and increasing the value of state-owned assets constitutes the fundamental baseline. Safety comes first, profitability second, and liquidity third.”Jin Haitao, Chairman of Qianhai Ark Asset Management Co., Ltd. and Chief Executive Partner of Qianhai Fund of Funds, shared his insights on equity investment under the current circumstances. He remarked, “Without venture capital, there would be no technological innovation. I believe that regulations hindering the development of equity investment should be gradually reduced or even abolished, so that the venture capital industry can fully play its role in supporting initiatives of national strategic significance.” The insightful remarks delivered by the guests provided attendees with valuable industry perspectives.

Leveraging Chongqing’s unique endowments, the conference promoted the integrated innovation of finance and technology through various formats—including IP launches, thematic promotions, closed-door exchanges, and field visits—thereby supporting Chongqing’s development into a distinctive financial hub in western China.

Chongqing’s Financial Ecosystem Has Been Comprehensively Optimized.Chongqing is actively promoting the deep integration of technology and finance. In accordance with the requirements of the "Plan for Chengdu and Chongqing to Jointly Build a Western Financial Center," the city is committed to establishing itself as a highland for private equity investment funds in western China. At the conference, Zhou Hehua, Executive Deputy Director of the Office of the Financial Commission of the CPC Chongqing Municipal Committee and Director of the Chongqing Municipal Local Financial Administration Bureau, attended to deliver a keynote address. He stated, "In recent years, the municipal party committee and municipal government have attached great importance to the development of the equity venture capital fund industry. Chongqing has conducted in-depth research centered on the '33618' modern manufacturing cluster system and the '416' strategic layout for technological innovation, establishing a 'project repository' suitable for fund investments. This repository includes 7,619 high-tech enterprises and 310 national-level 'Little Giant' enterprises across the city. We will open this pipeline of investable projects to investment institutions, regularly release updates on scientific research developments and investment guidelines, and increase the supply of projects for equity venture capital funds. Furthermore, Chongqing continues to optimize its full-chain services covering 'fundraising, investment, management, and exit.' Government-backed fund-of-funds have been successively established, including a RMB 200 billion industrial investment fund-of-funds, a RMB 30 billion Chengdu-Chongqing Twin City Economic Circle Development Fund, and a RMB 20 billion High-Quality Development Industrial Investment Fund. Looking ahead, we will continue to deepen cooperation among funds, supporting more leading equity investment institutions to collaborate with municipal and district-level industrial fund-of-funds. By working together in both directions, we aim for win-win outcomes. We hope that all participants will achieve significant successes and return fully rewarded from their endeavors in Chongqing."

Furthermore, the agglomeration and radiating effects of Chongqing’s financial market system are gradually becoming apparent, with the industrial investment fund of funds playing a pivotal role. In May 2023, Chongqing Yufu Holding Group integrated resources to establish the Chongqing Industrial Investment Fund of Funds. This fund of funds focuses on two trillion-yuan-level dominant industrial clusters in Chongqing—intelligent connected new energy vehicles and next-generation electronic information manufacturing—and collaborates with leading investment institutions and industry players to form a cluster of sub-funds. At the event, Xie Wenhui, Party Secretary and Chairman of Chongqing Yufu Holding Group, stated, “The total size of this fund of funds is RMB 200 billion, with an initial committed capital of RMB 80 billion. It primarily conducts investments through a ‘sub-fund + direct investment’ model, aiming to build a sub-fund cluster with a total size of RMB 600 billion and leverage over RMB 1 trillion in investment into Chongqing’s advanced manufacturing sector. To date, the paid-in investment amount of the industrial fund of funds has exceeded RMB 10 billion. We sincerely welcome entrepreneurs and various institutions to engage in deep cooperation with the Chongqing Industrial Fund of Funds, and encourage more entrepreneurs to establish their businesses in Chongqing, jointly empowering the high-quality development of Chongqing’s advanced manufacturing industry and creating a better future together.”

Chongqing Venture Capital Day Officially Launches.The new IP “Chongqing Venture Capital Day” was officially unveiled at the conference. Through the establishment of this initiative, Chongqing aims to accelerate the aggregation of diverse innovation resources and factors, as well as the optimization and upgrading of its economic structure. Chongqing Venture Capital Day will feature a variety of activities, including centralized roadshows, thematic salons, and research visits. Focusing on key sectors such as intelligent connected new energy vehicles, next-generation electronic information manufacturing, intelligent equipment and smart manufacturing, advanced materials, and biopharmaceuticals, the initiative will hold regular monthly exchange events to facilitate precise matching and in-depth engagement between innovation and capital. The inaugural matchmaking event of Chongqing Venture Capital Day, a special DEMO session on smart manufacturing, was held at the conference, inviting investors and projects from relevant sectors to engage in in-depth exchanges and matchmaking.

Spotlight on Chongqing’s Benchmark Enterprises.As the construction of the Western Financial Center advances, Chongqing’s business environment continues to improve, and its venture capital ecosystem is becoming increasingly robust, attracting a greater aggregation of innovative resources. Companies in Chongqing have also demonstrated significant development momentum. The conference featured a pre-event titled “Smart Manufacturing Hub—On-Site Visits to Chongqing Projects,” inviting renowned investment institutions to conduct field visits to benchmark enterprises in Chongqing and explore cooperation opportunities through face-to-face exchanges. Additionally, the results of the “2024 Chongqing Future Stars 50” enterprise selection, initiated by Investment Frontier, the entrepreneurship and investment information platform under Zero2IPO Ventures, were officially released at the conference. This initiative aims to identify outstanding enterprises with prominent competitive advantages, strong scientific and technological innovation capabilities, and significant growth potential, thereby facilitating efficient alignment between industry and capital, leveraging venture capital to drive technological innovation and industrial development, and supporting Chongqing’s high-quality development.

As 2024 draws to a close, industry leaders have shared their profound insights on market development from this new starting point. Li Liang, Founding Partner of Hillhouse Capital, shared his reflections on the equity investment industry at the event. He stated, “In the past, venture capital resembled a crystal ball that could foresee the future; today, it requires us to co-create the future alongside entrepreneurs. The lifeblood of the investment industry is outstanding entrepreneurs. Therefore, our mission is to identify more exceptional founders and support them in continuously pursuing creative endeavors.” Addressing how to adapt to change amidst industry shifts has also become a topic of significant interest within the sector. During a roundtable discussion, Cao Yonggang, President of Hony Capital, remarked, “Regarding adaptation, I believe the key lies in completely letting go of nostalgia for the past era, waking up early to start anew, and re-establishing industry consensus on capital rules, management practices, and asset valuation.”

Looking ahead to investment track selection in 2025, Jiao Teng, Partner at Mingshi Venture Capital, stated: “The investment methodology for 2025 comprises three key points: First, adhere to a long-term cycle and work backward from the end goal to identify disruptive opportunities in each era; second, identify the strongest players within these opportunities; third, over the next five to ten years, artificial intelligence will remain the core of the main tracks in hard-tech investment.” Venture capital has become an accelerator for technological innovation and industrial upgrading, with investment gradually shifting from virtual to real assets. Addressing the theme “Technology Toward Innovation, Venture Capital Toward Substance,” Li Wei, Founding Partner of Sinovest Capital, argued that model innovations unsupported by hard technology are like castles built on sand, unable to endure. He stated, “In the current international competitive environment, we are operating within a ‘small yard, high fence’ framework. To break through the current impasse, we should increase both investment in hard technology and efforts to promote related knowledge. Furthermore, the capital markets should pay greater attention to hard-tech investment.”

Many private equity firms are currently grappling with the challenge of “exit difficulties.” Addressing the strategy of “retreating to advance,” Gong Puling, Founder and Chairman of Tangxing Capital, stated, “The greatest anxiety among investors today is the inability to identify clear exit logics and pathways. Currently, the only viable channels are seeking mergers and acquisitions (M&A) or exiting through secondary transfers between funding rounds. In the past, many portfolio companies faced collective opposition from investors when considering listings on the Hong Kong Stock Exchange; however, under the new circumstances, this has become a favorable option. Therefore, we support companies unable to list domestically in actively pursuing overseas listing opportunities.” Against the backdrop of a slowdown in A-share IPOs, M&A exits have garnered high expectations from investment institutions. Responding to this turning point, Wang Wei, Managing Director at DH Capital, expressed his viewpoint: “From the perspective of fund practitioners, I am optimistic about the future. The M&A asset class is accelerating its progress in terms of fund scale, product specialization, and practitioner expertise.” On the industry front, the conference focused on hot sectors such as advanced manufacturing, big health, artificial intelligence, and hard technology, organizing roundtable discussions that delved into future development trends and investment opportunities in these fields, providing attendees with unique insights and profound perspectives.

In addition, the conference features an advanced track for state-owned capital funds—a closed-door exchange session—to jointly explore the latest development trends, strategy optimization, risk management, and innovative practices of government industrial investment funds under the new circumstances. This more private, professional, and efficient communication platform facilitates close-range intellectual exchanges among attendees.

The 24th China Private Equity Annual Conference, with its rich and diverse content, meticulously designed agenda, and profound industry insights, delivered a spectacular gathering for the private equity sector. As a highly influential annual event in the industry, the conference not only provided a platform for attendees to explore collaborative development and discuss future trends but also offered multidimensional, in-depth strategic perspectives and inspirations. Moving forward, it will continue to foster mutual promotion and shared growth with the industry.