China's Private Securities Funds Exceed 8 Trillion Yuan

China’s private securities investment funds surpassed 8 trillion yuan (US$1.2 trillion) for the first time at the end of June, emerging as the core engine driving the expansion of the country’s private fund industry, according to the Asset Management Association of China.

Propelled by the huge growth in securities funds, assets under management in the broader private fund industry hit a record 23.66 trillion yuan, the association said. The sector has achieved record-breaking asset levels for 12 consecutive months, and added 1.51 trillion yuan in the first half of 2026.

The issuance market also remains active. In June, 2,219 new private funds worth 109.16 billion yuan were registered, and securities products accounted for more than 60 per cent of this volume, the association’s data showed.

Venture capital (VC) and private equity (PE) showed increased activity across fundraising, investment and exits in the primary market, according to a report from data provider CVSource. The number of new VC and PE funds doubled in the first half of the year, supported mainly by state-owned platforms and corporate limited partners, it said.

Meanwhile, a total of 2,231 institutions took part in the establishment of new funds in the first six months, representing a 67 per cent increase from 1,333 institutions in the same period a year earlier, according to the report. Of these institutions, 18 per cent established three or more funds during the year.

In terms of investment focus, electronic information, advanced manufacturing and healthcare ranked as the top three sectors. Institutions generally directed capital towards early-stage companies and “hard tech,” making sectors such as semiconductors and artificial intelligence the primary destinations for investment, the report said.