China’s private fund assets have surged, fueled by an aggressive pivot toward technology sectors that has propelled domestic investment vehicles to the top of global performance charts. The growth spans private equity, venture capital, and private securities investment funds, all riding a wave of concentrated bets on artificial intelligence, semiconductors, and what the industry calls “hard tech.”
Chinese funds are running the leaderboard
Chinese multi-asset funds claimed 13 of the top 20 spots globally for cross-asset vehicles with more than $500 million in assets under management in 2025.
The Maxwealth Science and Technology Zhixuan Mixed fund posted 231% total returns in 2025, managing approximately 11.5 billion yuan in AUM. Tebon, another Chinese fund, notched 129% returns over the same period.
The returns are largely the product of concentrated positions in domestic tech stocks, particularly companies building out AI infrastructure and semiconductor capabilities. Approximately 60% of major Chinese venture capital funding is now directed toward hard tech, including AI and semiconductors.
Policy tailwinds and the Hong Kong IPO pipeline
Hong Kong’s IPO pipeline is projected at roughly $60 billion for 2026, nearly double the 2025 levels. The Hong Kong exchange has become the preferred venue for Chinese tech companies seeking to go public, and the projected doubling of activity signals sustained confidence in the sector’s trajectory.
What this means for investors
China’s share of global private equity fundraising has fallen dramatically. It dropped to just 1% in 2024, down from 3% the year before. For context, that figure stood at 13% back in 2016.
The projected Hong Kong IPO boom in 2026 will be a critical test. If that $60 billion pipeline materializes, it validates the current investment thesis and provides liquidity for funds sitting on appreciated positions. Investors watching this space should track the IPO conversion rate as closely as they track the fund performance numbers, because in private markets, the exit is what ultimately separates a good investment from a good story.