Core Insights - The venture capital industry in China is experiencing a recovery, with an increase in LP (Limited Partner) funding and a diversification of exit strategies becoming a consensus among market participants [1][2][3] Group 1: LP Funding Recovery - LP funding willingness has generally increased this year, marking a departure from the previous fundraising winter, with a notable rise in the number of new LPs and the preparation of annual fund operation summaries for existing LPs [1][3] - The total committed capital from institutional LPs reached 1.24 trillion RMB in the first three quarters of 2025, reflecting a 9% year-on-year growth, with expectations for double-digit growth for the entire year [3] Group 2: Changes in LP Structure - The structure of LPs in China's private equity market has shifted, with government and state-owned capital becoming dominant, accounting for 75% to 80% of the market, thus influencing investment strategies towards early-stage and smaller enterprises [5][6] - The focus of policy-type LPs is increasingly directed towards technology and innovation sectors, with over 70% of funds flowing into these areas this year [5][6] Group 3: Diversification of Exit Strategies - The adjustment in top-level design has led to a shift away from IPOs as the primary exit channel, with S funds and merger funds gaining prominence [9][10] - Mergers and acquisitions are favored by state-owned capital for their ability to enhance asset scale and provide stable cash flow, while S funds are seen as a quick way to realize returns, especially for equity products with fiscal return requirements [9][10]