China Market Weekly Update

2025/10/27 - 2025/11/02

Weekly Investment Overview

Largest Biotech Financing

¥400M+
Maikekang Biotech D Round

World's Fastest 3D AI Chip

¥100M+
Hangzhou Micronano Core Electronics

Unmanned Delivery Growth

¥8.6B
Industry Financing in 2025

This week's investment landscape in China shows diversification and high-tech focus, particularly in AI, biotech, new energy, and advanced manufacturing. AI has emerged as a core driver, deeply empowering multiple industries with real commercial applications rather than remaining a conceptual technology. Internet giants' investments in AI have reached ¥83.14B in Q3, accounting for 17% of their revenues, while ByteDance is expected to invest $20B in AI capital expenditures.

Investment Highlights

Biotech Breakthrough: Maikekang Biotech completed a D round financing exceeding ¥400M to accelerate clinical research of recombinant herpes zoster vaccine and RSV vaccine
AI Chip Innovation: Hangzhou Micronano Core Electronics secured over ¥100M in Series B financing to develop the world's fastest mass-producible 3D edge AI chips
Autonomous Delivery Milestone: The unmanned delivery industry is rapidly breaking through commercialization threshold, with leading companies receiving about ¥8.6B in financing and each delivering 10,000 vehicles
Low-Altitude Economy: Vision Aero (Xi'an Weixin Aerospace Technology) completed seed and angel rounds of financing approaching ¥100M for trial flight preparation of its flagship model Vector 5 (7-seat eVTOL)
Space Technology: Tuqiang Aerospace secured tens of millions yuan in angel round to develop China's first on-orbit imaging verified satellite SAR payload, reducing costs to 30% of traditional prices
Energy Storage Leadership: Rongke Energy's IPO process accelerates to become China's first all-vanadium flow battery listed company, with 2024 delivery volume of 1,428MWh accounting for nearly 60% of national total

The investment market this week reflects AI technology's penetration into vertical domains. In the AI chip sector, Hangzhou Micronano Core Electronics completed over ¥100M in Series B strategic financing, with its 3D-CIM technology aiming to create the world's fastest mass-producible 3D edge AI chips, breaking through the challenges of "high performance + low power consumption + low cost." This reflects the market's urgent demand for AI computing power and domestic replacement.

The biotech and healthcare sector continues to receive substantial investment, focusing on breakthrough frontier technologies. Maikekang Biotech completed a D round financing exceeding ¥400M to accelerate clinical research of recombinant herpes zoster vaccine and respiratory syncytial virus vaccine. Kangdesai Medical received tens of millions yuan in Series A investment to delve into "mRNA + cell therapy" applications in tumors and severe fibrosis. These investments highlight China's commitment to advanced medical technologies like innovative drug development, cell therapy, and bio-artificial organs.

Strategic investment in new energy and advanced manufacturing sectors demonstrates accelerated domestic substitution processes. Rongke Energy's IPO process is accelerating, potentially becoming the first all-vanadium flow battery listed company on the A-share market, with its 2024 delivery volume reaching 1,428MWh, accounting for nearly 60% of the national total. This showcases China's leading position in new energy infrastructure construction. These events indicate that China is actively promoting self-reliance in key areas and enhancing industrial chain resilience.

Key Deals

Company Sector Amount Deal Type
Maikekang Biotech Biotech ¥400M+ D Round
Hangzhou Micronano Core Electronics AI Chips ¥100M+ Series B
Vision Aero eVTOL Aircraft Nearly ¥100M Seed & Angel
Tuqiang Aerospace Satellite Technology Tens of millions ¥ Angel Round
Kangdesai Medical Cell Therapy Tens of millions ¥ Series A

China Market & Policy Weekly Update

Industrial Enterprise Profits

3.2%
YoY Growth (Q1-Q3 2025)

September Profit Growth

21.6%
Highest Since 2024

Minimum Wage Standard

¥2,740
Shanghai (Highest in China)

Green Factory Production

40%
Target by 2030

This week, China's market and policy dynamics present multidimensional development trends, particularly in macroeconomic policies, industrial transformation upgrades, and consumption stimulation. The "15th Five-Year Plan" provides a clear blueprint for China's economic and social development over the next five years, emphasizing high-quality development, technological self-reliance, deepened reforms, and increased consumption rates. Unlike the previous plan, the new one doesn't set a specific economic growth target, instead emphasizing that economic growth should remain within a reasonable range.

Fiscal Policy
15th Five-Year Plan Fiscal Shift
Fiscal policy will transition from "establishing a modern fiscal system" to "playing the role of active fiscal policy" to address domestic and foreign risks and uncertainties through six major measures, optimizing income distribution, enhancing consumption, and strengthening technological investment.
Green Development
Carbon Emissions Trading Expansion
By 2027, China's carbon emissions trading market will expand to major emission industries in the industrial sector, aiming to achieve carbon peaking by 2030 and promote comprehensive green transformation of the economy and society.
Consumption
Duty-Free Policy Optimization
Starting November 1, 2025, port departure and in-city duty-free shops must allocate at least 25% of operating area to domestic products, while expanding duty-free product categories to include smartphones, drones, and sports equipment to guide overseas consumption back and attract foreign visitors.

Policy Analysis

The new policy framework demonstrates China's shift toward quality-focused development rather than speed-focused growth. The "15th Five-Year Plan" transitions from setting specific GDP targets to emphasizing economic growth within a reasonable range, with greater focus on resident consumption rates and domestic demand as the main driver of economic growth. This represents a strategic adjustment in response to both internal development needs and external uncertainties.

In the green development arena, policies show accelerated implementation of carbon reduction goals. The Ministry of Ecology and Environment's announcement that the carbon emissions trading market will expand to major industrial emission sectors by 2027 aligns with the carbon peaking target by 2030. Similarly, the Ministry of Commerce's "Implementation Opinions on Expanding Green Trade" serves as the first specialized policy document in the green trade field, aiming to promote trade optimization and upgrading while helping achieve "dual carbon" goals.

The consumption stimulation policies, particularly the duty-free store optimization, represent targeted efforts to recapture overseas consumption and attract foreign visitors. By requiring duty-free shops to allocate at least 25% of space to domestic products and expanding duty-free categories to include electronics and other high-value items, China aims to enhance both domestic consumption and inbound tourism spending, addressing the dual goals of consumption growth and opening-up.

Tech Market Overview

This week, China's technology market demonstrates vigorous momentum, particularly in artificial intelligence, new energy vehicles, aerospace technology, and consumer electronics. In the AI domain, China's indigenous innovation continues to gain strength, with breakthroughs in image generation efficiency, multimodal world models, and commercially competitive large language models that balance performance with cost-effectiveness.

Largest Wind Turbine

26 MW
Dongfang Electric

M2 Model Speed

2x faster
vs Claude 3.5 Sonnet

BYD Sea Lion 06 Production

100,000 units
In 100 days

Tech Frontiers

World's Largest Wind Turbine: Dongfang Electric's independently developed 26 MW offshore wind turbine successfully connected to the grid in Shandong Dongying, setting new global records for wind turbine unit capacity and rotor diameter, with annual generation capacity of 100 million kWh
Leading AI Model Performance: MiniMax's M2 model ranked first in open-source model evaluation with a score of 61, featuring inference speed twice that of Claude 3.5 Sonnet, API price only 8% of competitors, and 230B parameters
Advanced Multimodal AI: Beijing Academy of Artificial Intelligence (BAAI) released the open-source multimodal world model Wujie·Emu3.5, which excels in image, text, and video tasks, outperforming Gemini-2.5-Flash-Image
Electric Vehicle Milestone: BYD Sea Lion 06 rolled off 100,000 units in 100 days at its production base, setting a new record as the fastest across all BYD vehicle categories
Manned Spaceflight Achievement: Long March 2F Y21 carrier rocket successfully launched the Shenzhou-21 manned spacecraft, carrying astronauts Zhang Lu, Wu Fei, and Zhang Hongzhang for a 6-month space station mission, marking the completion of 2025's manned space mission
First Lighthouse Factory in Photovoltaics: Tongwei Group (Sichuan Meishan Factory) was recognized as the world's first "Lighthouse Factory" in photovoltaic cell manufacturing, producing one cell every 0.7 seconds, increasing daily output from 4.41 million to 4.95 million cells, and reducing equipment failure rates by 50% using AI large models

China's technology landscape this week highlights significant breakthroughs across multiple domains. In the renewable energy sector, Dongfang Electric's 26 MW offshore wind turbine represents a world-leading achievement, demonstrating China's growing dominance in green technology. With an annual generation capacity of 100 million kWh, this innovation positions China at the forefront of large-scale clean energy solutions and supports its ambitious carbon reduction goals.

In the AI domain, China is making remarkable strides in developing cost-effective, high-performance AI models. MiniMax's M2 model showcases China's ability to compete with global leaders like Claude and GPT, offering twice the inference speed at a fraction of the cost. Similarly, Beijing Academy of Artificial Intelligence's Wujie·Emu3.5 demonstrates growing capabilities in multimodal AI. These developments indicate China's strategic focus on building indigenous AI capabilities that balance performance with commercial viability.

The aerospace achievements, highlighted by the successful launch of Shenzhou-21 and the announcement of ambitious 2026 mission plans, reflect China's long-term commitment to space exploration and technological self-reliance. Meanwhile, in the manufacturing sector, innovations like Tongwei Group's "Lighthouse Factory" showcase the integration of AI and automation into traditional industries, substantially improving productivity and efficiency. This convergence of digital technologies with industrial processes represents a key aspect of China's industrial upgrading strategy.

Selected News

Tech News List
2025/10/30

World's First "Lighthouse Factory" in Photovoltaic Cell Manufacturing

Tongwei Group (Sichuan Meishan Factory) was recognized as the world's first "Lighthouse Factory" in photovoltaic cell manufacturing, producing one cell every 0.7 seconds, increasing daily output from 4.41 million to 4.95 million cells, and reducing equipment failure rates by 50% using AI large models.

Reference

2025/10/29

World's Largest 26 MW Offshore Wind Turbine Connected to Grid

Dongfang Electric's independently developed 26 MW offshore wind turbine successfully connected to the grid in Shandong Dongying, setting new global records for wind turbine unit capacity and rotor diameter, with annual generation capacity of 100 million kWh.

Reference

2025/10/29

MiniMax M2 Model Ranks First Among Open-Source Models

MiniMax's M2 model ranked first in open-source model evaluation with a score of 61, featuring inference speed twice that of Claude 3.5 Sonnet, API price only 8% of competitors, and 230B parameters.

Reference

Market & Policy News List
2025/11/02

China Optimizes Duty-Free Shop Policies

Five departments including the Ministry of Finance issued a notice that, effective November 1, port departure and in-city duty-free shops must allocate at least 25% of operating area to domestic products, while expanding duty-free product categories to include smartphones, drones, and sports equipment to guide overseas consumption back and attract foreign visitors.

Reference

2025/11/02

Industrial Enterprise Profits Up 3.2% in First Three Quarters

The National Bureau of Statistics reported that profits of industrial enterprises above designated size increased by 3.2% year-on-year in the first three quarters of 2025, with September's profits surging 21.6% year-on-year, reaching the highest growth rate since 2024, primarily driven by low base effects, better-than-expected production, and price recovery.

Reference

2025/10/31

Ministry of Commerce Issues First Green Trade Policy Document

The Ministry of Commerce issued the "Implementation Opinions on Expanding Green Trade" as the first specialized policy document in the green trade field, aiming to promote trade optimization and upgrading while helping achieve "dual carbon" goals, emphasizing that financial institutions will support green service trade development through green credit, bonds, and equity funds.

Reference

2025/10/29

Carbon Emissions Trading Market to Expand to Major Industrial Sectors

The Ministry of Ecology and Environment announced that China's carbon emissions trading market will expand to major emission industries in the industrial sector by 2027, following the "Opinions on Promoting Green and Low-carbon Transformation and Strengthening Carbon Market Construction" issued in August, aiming to further promote emission reduction in high-emission industries such as steel, cement, and aluminum smelting.

Reference