Core Viewpoint - The Chinese private equity market is showing signs of recovery in Q1 2025, with a narrowing decline in the number and scale of newly raised funds, indicating a stabilization trend driven by strong policy support [1][5]. Fundraising Activities - In Q1 2025, the number and scale of newly raised funds in China's private equity market saw a year-on-year decline of approximately 3%, with 992 funds raising a total of 347.08 billion RMB, a significant narrowing compared to the full year 2024's declines of 43.0% and 20.8% [2]. - The proportion of RMB funds increased, with 988 RMB funds raising 342.62 billion RMB, a year-on-year increase of 1.7%, accounting for 99.6% of the total number of funds [2]. - Foreign currency funds continued to struggle, with only 4 foreign currency funds raising approximately 4.47 billion RMB, a year-on-year decline of 77.9% [2]. Fund Type Distribution - In Q1 2025, the number of newly raised venture capital funds was the highest, totaling 657, a slight year-on-year decrease of 3.1%, while the fundraising scale increased by 2.6% to 111.72 billion RMB [3]. - Growth funds ranked second in number with 278 funds, but led in fundraising scale at 188.47 billion RMB, a year-on-year increase of 42.4% [3]. - M&A funds also saw significant growth in both number and scale due to policy guidance [3]. Investment Activities - The investment activity in China's private equity market rebounded in Q1 2025, with 2,329 investment cases completed, a year-on-year increase of 12.2%, although the disclosed investment amount was approximately 139.82 billion RMB, down 27.9% [4]. - Excluding extreme cases, the estimated total investment scale for the 2,329 cases could reach 180 billion RMB, with a reduced year-on-year decline of around 8% [4]. - The hard technology sector remained a focus, with the semiconductor and electronic equipment sector leading in both the number of investment cases and amounts, totaling 514 cases and 43.48 billion RMB, a year-on-year increase of 37.0% [4]. Regional Distribution - The leading regions for newly raised funds were Zhejiang, Jiangsu, and Shandong, with Zhejiang at the forefront with 204 funds [3]. - In terms of fundraising scale, Beijing led with 62.30 billion RMB, a year-on-year increase of 6.2% [3]. - Investment case concentration was high in Jiangsu, Shanghai, Zhejiang, Shenzhen, and Beijing, with Jiangsu having the highest number of cases [4]. Policy Support - The government introduced several key policies to support the high-quality development of the private equity market, including guidelines to improve the management mechanisms of different types of funds and to encourage long-term capital investment [5]. - Industry experts noted that the fundraising side showed strong resilience, and the investment pace is gradually recovering, suggesting that diversified capital will enter the market in an orderly manner [5].