Capital Convergence: 2021 China (Wuhan) Venture Capital Summit Ignites Economic Growth under the New Development Paradigm

June 23-24On [date], byHosted by the Wuhan Municipal People's Government, and organized by the Wuhan Municipal Local Financial Work Bureau, the Jianghan District People's Government of Wuhan, Zero2IPO Ventures, and Changjiang Securitiesof2021 China (Wuhan) Venture Capital SummitAt the Fairmont WuhanConvene, the theme of this summit is“Building a Regional Financial Hub to Lead High-Quality Economic Development.” Bringing together leading investors, innovation pioneers, and renowned investment institutions to jointly explore the future direction of economic development.

Wuhan owes its existence and prosperity to the Yangtze River, bearing major strategic responsibilities such as the rise of central China and the coordinated development of the urban agglomeration in the middle reaches of the Yangtze River. Under the new pattern of the 14th Five-Year Plan, Wuhan’s planningVision 2035 Goals, Accelerate the Transformation intoChina's national economic center, national scientific and technological innovation center, national commercial and logistics hub, international exchange center, and regional financial center“Five Centers”, and strive to build a modernized Greater Wuhan.Centered on the development of a regional financial hub, Wuhan has proposed that byIn 2025, the value-added of Wuhan’s financial industry exceeded RMB 250 billion., to build a nationally leading sci-tech finance innovation center. This2021 China (Wuhan) Venture Capital SummitofConvene, will activate the innovation ecosystem under the new landscape of Wuhan and Hubei Province, showcasing the achievements and renewed image of Wuhan's high-quality economic development.

Gathering Momentum: Top-Tier Guests Discuss the Future of the Industry

Ni Zhengdong, Founder and Chairman of Zero2IPO Group; Liu Yuanrui, Deputy Secretary of the Party Committee, Director, and President of Changjiang Securities Co., Ltd.; Zhou Kui, Partner at Sequoia Capital China Fund;IDG Capital Partner Niu Kuiguang; Walden International Managing Director Huang Qing; SoftBank China Capital Management Partner Song Anlan; Deputy Secretary of the Party Committee and General Manager of Hubei High-Tech Industry Investment Group Co., Ltd.Over 100 renowned institutional investors, including Li Yuanchu, attended the event to share insights and engage in discussions on key topics such as hard-tech investment, homogenized competition in venture capital, and multi-tiered capital markets. The event also featured matchmaking sessions between innovative projects and investors, as well as one-on-one investment promotion meetings with Jianghan District, facilitating efficient connections between high-potential enterprises, the government, and top-tier investment institutions, thereby injecting capital momentum into Wuhan’s future development.

The summit, with Zhang, Deputy Secretary of the Wuhan Municipal Committee of the Communist Party of ChinaShuwith the opening remarks, followed by Zero2IPO GroupFounder, ChairmanIn his guest speech, Ni ZhengdongSincerely wish Wuhan to become the city with the fastest growth in venture capital and private equity over the next decade.and summarized the five major changes that have occurred in China's private equity investment industry:“First, the concentration effect among leading institutions is significant;Second, investment tracks are shifting; third, investment regions are changing; fourth, exits via IPOs are becoming increasingly active; fifth, equity investment in China exhibits distinct Chinese characteristics.”

Liu Yuanrui, Deputy Secretary of the Party Committee, Director, and President of Changjiang Securities Co., Ltd., shared his insights on breaking through the bottlenecks in the venture capital and private equity industry at the event. He noted that over the past decade, while the scale of private equity investment has grown significantly, investment returns have shown a negative correlation. The core issue lies in the limited industrial research capabilities of many market participants. Fundamentally, the profits generated from investment activities stem from professional research. In-depth industrial research and extensive industrial resources are likely to become the core competitive advantages for most venture capital and private equity firms in the future. Leveraging their full-business-chain layout and the advantages accumulated in research services in recent years, securities firms may emerge as a key growth driver for breakthroughs in the industry.

Over the years, venture capital firms have played an increasingly important role in supporting the innovative development of the real economy and promoting industrial transformation and upgrading. Sequoia Capital China FundPartnerZhouKuiIn the context of revolving aroundIn his thematic presentation titled “Strengthening Synergistic Advantages through Empowerment to Continuously Support the Real Economy,” he stated, “From a global perspective and from China’s standpoint, investing in China is the best choice. Why invest in the new economy? China boasts a massive market size and vibrant entrepreneurs, which”15 years into a very favorable process of digital economy development.”

Amid the growing consensus on technological innovation, China’s hard-tech sector is now witnessing a flourishing diversity of advancements. In this regard,Partner, IDG CapitalNiu Kuiguang delivered a keynote speech, stating:“In terms of hard technology, Chinese enterprises possess certain structural advantages, such as in artificial intelligence, intelligent manufacturing, and 5G. Chinese hard-tech companies are accelerating the growth of the Chinese market, thereby creating more opportunities.”

During the same period, a themed summit was held on-site, featuring dedicated roundtable discussions on optoelectronic chips, next-generation artificial intelligence, and general health. The sessions addressed high-profile topics, assessed industrial trends in Wuhan, and explored future investment opportunities.

List Released: High-Growth Enterprises Showcase Wuhan’s Innovative Spirit       

After three months of rigorous screening, the highly anticipated results were unveiled at the summit.“2021Wuhan Future StarTOP100The “Longmen Bang TOP 50” list has strengthened the pipeline of companies preparing for public listing. The “2021 Wuhan Future Stars TOP 100” initiative solicited emerging industry enterprises with strong development prospects and high-growth companies with investment potential from across Wuhan, identifying the most promising small, medium, and micro-sized enterprises based on their adaptability, growth potential, innovativeness, and uniqueness. Companies such as Dingkang (Wuhan) Biopharmaceutical Co., Ltd., Feiyan Aviation Remote Sensing Technology Co., Ltd., Hubei XinQing Technology Co., Ltd., and Wuhan Jiuqian Supply Chain Management Co., Ltd. were included on the list.

Meanwhile, Wuhan has focused on local enterprises preparing for initial public offerings (IPOs) and established"Longmen Ranking“Top 50” Corporate List: Facilitating the Final Mile for Wuhan Enterprises’ IPOs.The listed companies include outstanding enterprises from multiple high-growth sectors, such as Wuhan Benchu Ziwu Information Technology Co., Ltd., Hubei Jiutongfang Microelectronics Co., Ltd., and Wuhan Cobot Technology Co., Ltd.

The list combines industry influence with Wuhan’s unique characteristics, driving capital attention to and discovery of high-growth enterprises in Wuhan. The listed companies will serve as new calling cards for Wuhan’s industrial renaissance and economic awakening in the new era of the digital economy, showcasing the city’s innovative spirit and urban charm. This market-oriented selection highlights the strength and capital appeal of Wuhan-based enterprises, and will also accelerate Wuhan’s efforts to build“The Five Centers,” deploying the innovation chain around the industrial chain and laying out the industrial chain around the innovation chain, have brought positive impacts to building a modernized Greater Wuhan.

Boosting Regional Economic Development Through Multi-Pronged Measures

《Implementation Plan for Wuhan to Build a Regional Financial Center (2021–2025)》 outlines measures in four areas, including strengthening the financial market system, cultivating benchmark-level financial innovation capabilities, and building a sustainable financial ecosystem.33 Specific Work Measures Explicitly Set Forth the Key Objectives for 2025: The Scale of Private Equity Funds to Exceed RMB 500 Billion, the Number of Financial Institutions to Surpass 40, and the Number of Listed Companies to Exceed 150.To aggregate and strengthen financial headquarters, enhance the level of direct financing, promote innovative development in finance, and foster financial talent, Fang, Deputy Secretary-General of the Wuhan Municipal People's GovernmentCleanA presentation on the “Support Policies for the Construction of Wuhan Regional Financial Center” was delivered on-site, adopting multiple measures to achieve win-win outcomes and seize future development opportunities.

Venture capital is playing an increasingly important supporting role in regional economic growth and industrial upgrading, gradually forming an ecological environment where capital drives industry and coexists with it for mutual development. Released on-site was the “"2021 White Paper on the Development of Equity Investment in Wuhan City"Based on an analysis of the development environment for Wuhan’s equity investment market, this report takes stock of the market from the perspectives of fundraising, investment, and exit,An in-depth analysis from multiple dimensions, including IPOs and government-guided funds, comprehensively examines the development trends of venture capital (VC) and private equity (PE) in Wuhan, showcasing the vitality of its equity investment landscape and providing references for the growth of the equity investment industry under Wuhan’s 14th Five-Year Plan.

Anchoring itself to the overall positioning as a national central city, a core city of the Yangtze River Economic Belt, and an international metropolis, the Wuhan Municipal Committee of the Communist Party of China and the Wuhan Municipal People’s Government have proposed the development of the Wuhan Financial City, and itsConstruction as“The Top Priority in Building a Vanguard of the ‘Five Centers’”. The summit features a dedicated promotional session for Wuhan Financial City, establishing an effective platform for aligning industrial capital with financial capital to support“Wuhan Financial City” leverages financial strength to serve the real economy. The release of multiple favorable policies and landmark reports has promoted the mutual reinforcement between emerging industries and the financial sector, establishing a regional highland for economic and industrial development, and further supporting the high-quality development of Wuhan’s capital market.

A full-day venture capital ecosystem exhibition will be specially held during the summit to comprehensively showcase Wuhan’s industries.+Financial Overview, Wuhan's Characteristic Industries, Wuhan Financial City, Venture Capital Firms, etc.Leverage Wuhan’s venture capital ecosystem advantages through in-depth engagement to attract more capital and enterprises, thereby enhancing the city’s industrial vitality and fostering innovative development.

The financial sector’s role in regional economies is becoming increasingly prominent. Benefiting from Wuhan’s convenient transportation as a thoroughfare linking nine provinces, its leading economic position in central China, and its status as an opening-up window for development, Wuhan’s financial industry is seizing a rare opportunity to expand and strengthen. According to the “"2021 China Urban Tech-Finance Development Index"Wuhan ranks seventh, underscoring its positioning as a city of technological innovation. The convening of the China (Wuhan) Venture Capital Summit further accelerates the aggregation of innovative factors such as capital and technology, building momentum to empower the real economy. Using venture capital as its brush, Wuhan is striving to paint a new picture of high-quality development.