Core Viewpoint - Venture capital has become a crucial lever for local economic development in China, with cities actively enhancing their investment environments and attracting quality investment institutions and innovative enterprises [1]. Group 1: City Venture Capital Activity - The 2024 China City Venture Capital Activity Index ranks Shanghai, Shenzhen, and Beijing as the top three cities, showing a significant lead over other cities [3]. - From 2018 to 2024, the overall trend of city venture capital activity indices has shown a fluctuating decline, with Beijing experiencing the most significant drop from 4302 in 2020 to 2166 [6]. - In terms of fundraising, Beijing ranks first due to its concentration of top financial institutions and national-level funding platforms, followed by Shanghai and Suzhou [8][11]. Group 2: Investment Trends - Shanghai leads the investment index in 2024, with Beijing and Shenzhen following closely behind, indicating a strong investment cluster in the Yangtze River Delta [12]. - The number of investment projects and financing events in Shanghai and Shenzhen accounts for 37% of the total in the top 10 cities, highlighting their roles as innovation engines [14]. Group 3: Exit Efficiency - Shenzhen has the highest exit index, breaking the previous dominance of Beijing and Shanghai in fundraising and investment, showcasing its exit efficiency advantage [15]. Group 4: City Innovation Power - The city innovation power index is closely linked to venture capital activity, with Beijing, Shanghai, and Shenzhen leading in both indices, indicating a symbiotic relationship between innovation and venture capital [19]. - Beijing's innovation power is bolstered by its national laboratories and top universities, while Shanghai benefits from its leading enterprises [20]. Group 5: Sector Concentration - The semiconductor and integrated circuit sector is the dominant investment area across major cities, with significant capital concentration [21]. - In terms of regional characteristics, Beijing leads in artificial intelligence, while Shenzhen excels in computer vision, reflecting the deep integration of local industrial resources and capital choices [22]. Group 6: Investment Activity in Key Cities - In 2024, Suzhou recorded 697 financing events with an estimated total financing amount of 272.67 billion, while Hangzhou had 577 events with 212.47 billion [22][23]. - Shenzhen's venture capital ecosystem is growing, with a notable increase in registered LP contributions, reaching 127.5 billion in 2024 [25].

Core Insights - The report released by Securities Times and Zhizhong highlights the rankings of Chinese cities in terms of venture capital vitality and innovation capability for 2024, with Shanghai, Shenzhen, and Beijing leading the way [1][2]. Group 1: Venture Capital Vitality - In 2024, Shanghai, Shenzhen, and Beijing maintain their top three positions in venture capital vitality, showing a significant gap from the fourth-ranked city, indicating a "head-led, tiered differentiation" pattern [2]. - Beijing ranks first in fundraising index due to its concentration of top financial institutions and national funding platforms, followed by Shanghai and Suzhou, with Nanjing and Shenzhen showing similar performance [2]. - Shanghai leads in investment index, with Beijing and Shenzhen closely following; the top ten cities show minor differences in investment indices, primarily consisting of first-tier and new first-tier cities [2]. - Shenzhen tops the exit index, breaking the previous dominance of Beijing and Shanghai in fundraising and investment, showcasing its efficiency in exits [2]. - The Yangtze River Delta region performs strongly, with Suzhou and Hangzhou both entering the top ten, while central and western cities are represented by Wuhan, Hefei, and Chengdu [2]. Group 2: Innovation Capability - Beijing, Shanghai, and Shenzhen occupy the top three positions in innovation capability index, with Beijing leading significantly due to its national laboratories (60% of the total), central enterprise R&D headquarters, and top universities like Tsinghua and Peking [2]. Group 3: Investment Trends in Key Sectors - In the investment landscape, the semiconductor and integrated circuit sector ranks among the top three in eight cities, including Shanghai, Shenzhen, and Suzhou, indicating a strong capital aggregation effect [3]. - Beijing leads in artificial intelligence (AI) as its primary investment sector, while Shenzhen ranks fourth in computer vision; Hefei's new materials and aerospace sectors also rank in the top five, reflecting a deep connection between local industrial resources and capital choices [3]. - The biopharmaceutical sector ranks in the top two in five cities, including Shanghai and Hangzhou, while medical devices rank second in Shenzhen, Suzhou, and Guangzhou, highlighting the sustained high interest in the healthcare sector [3].