Understanding China's tech sector means knowing the biggest players in the venture capital space. They are not the big tech companies like Tencent or Alibaba, nor international consortiums backed by Softbank. They are onshore funds that raise money from the Chinese state.

For years, China has adopted the so-called “Temasek model” of managing state wealth—setting up state-backed investment firms to manage hundreds of billions of dollars like the Singaporean sovereign wealth fund.

Those funds, accounting for only 26.6% of total Chinese VC firms, managed more than 60% of the money in China’s private equity market in 2019, according to a June report (in Chinese) by the Chinese investment research firm Zero2ipo.

Start your free trial now.

Get instant access to all our premium content, archives, newsletters, and online community.

Monthly Membership

Yearly Membership

What you get

Full access to all premium content and our full archives

Members'-only newsletters

Preferential access and discounts to all TechNode events

Direct access to the TechNode newsroom

Start your free trial now.

Get instant access to all our premium content, archives, newsletters, and online community.

Monthly Membership

Yearly Membership

Wei Sheng

Wei Sheng is a Beijing-based reporter covering hardware, smartphone, and telecommunications, along with regulations and policies related to the China tech scene. Before joining TechNode, he wrote about...