Core Viewpoint - The article highlights a significant trend of fund extensions in the investment industry, driven by mismatches between fund durations and the growth of invested companies, leading to widespread delays in exits and fund liquidations [1][5][14]. Group 1: Fund Extension Trends - A notable number of funds are currently in extension, with many having already undergone multiple extensions due to the challenges in exiting investments [1][3]. - The majority of active investment institutions were established between 2011 and 2015, indicating a high concentration of older funds facing exit difficulties [3][14]. - The trend of fund extensions is particularly pronounced among government-guided funds, which are often under pressure to meet performance metrics [6][9]. Group 2: Challenges in Exiting Investments - The difficulty in exiting investments is underscored by the fact that nearly 19 trillion yuan in funds are currently in extension or exit phases, reflecting a liquidity crisis in the primary market [14][15]. - The pressure on funds to return capital to Limited Partners (LPs) is increasing, with many funds facing scrutiny from regulatory bodies [6][10]. - The average duration for a fund to fully exit in the U.S. is around 19 years, while many domestic funds struggle to meet their shorter timelines [8][9]. Group 3: Market Dynamics and Future Outlook - The article suggests that the current environment necessitates a shift towards more patient capital, as the tech innovation cycle requires long-term investment strategies [15][16]. - Recent IPO activity, particularly in the A-share market, has created a sense of urgency among investors to capitalize on potential exits [16][17]. - The evolving landscape indicates a new cycle beginning, with expectations for improved exit opportunities as market conditions change [18].