China Market Investment & Tech Weekly Report

May 26 - June 1, 2025

Weekly Investment Overview

Total Investment Deals

45
Weekly Activity Count

Leading Sector

Information Technology
21 Deals

Top Region

Guangdong
17 Deals, ¥13.56B

Largest Deal

¥50B
Hydrogen Energy Fund

This week's Chinese investment market demonstrated exceptional activity with 45 total investment deals across diverse sectors. The market shows strong momentum in strategic emerging industries, with information technology leading with 21 deals, followed by healthcare (14 deals) and manufacturing (10 deals). Notably, the materials sector achieved the highest funding volume of ¥177.83 billion, primarily driven by Pangang Group's ¥159.96 billion financing.

Investment Highlights

China's Largest Hydrogen Fund: Sinopec initiated the nation's largest hydrogen energy industrial chain venture capital fund with ¥50 billion initial scale, focusing on key materials, core equipment, and original technologies.
Global-First Cardiac Drug Funding: Shunjing Pharmaceutical completed ¥300M Series A funding for SGC001, the world's first antibody drug for acute myocardial infarction, advancing China's original drug innovation capabilities.
Embodied AI Breakthrough: Diggua Robotics secured $100M Series A for industry-first single SoC compute-control integrated platform, while YouliQi raised hundreds of millions RMB for world's first 8-DOF humanoid robot mass production.
Aerospace-Grade Chip Advancement: Yanhuang Guoxin completed over ¥100M Series B+ funding for aerospace-grade high-reliability power management chips, addressing critical "chokepoint" technology challenges.
Regional Leadership Pattern: Guangdong Province dominated with 17 investment cases totaling ¥13.56 billion, leading China's eastern coastal regions in technology-intensive sector capital attraction.
Massive Materials Investment: Materials sector achieved ¥177.83 billion funding volume led by Pangang Group's ¥159.96 billion financing, demonstrating strategic focus on industrial foundation strengthening.

This week witnessed several landmark "first" and "largest" events. The most notable was the establishment of China's largest hydrogen energy industrial chain venture capital fund initiated by Sinopec, with an initial scale of ¥50 billion. This represents not only massive capital deployment but also demonstrates the determination of national energy giants to drive energy transition and build hydrogen energy ecosystems.

Leading Investment Region

Guangdong Province
17 Deals
¥13.56 Billion
Followed by Shanghai, Jiangsu, Zhejiang and Beijing

Key Deals

Company Sector Amount Deal Type
Sinopec Hydrogen Fund Clean Energy ¥50B Fund Establishment
Shunjing Pharmaceutical Biomedical ¥300M Series A
Diggua Robotics Embodied AI $100M Series A
YouliQi Robotics Humanoid Robotics Hundreds of Millions RMB Angel+
Yanhuang Guoxin Semiconductor >¥100M Series B+

China Market & Policy Weekly Update

Manufacturing PMI

49.5%
+0.5pts from April

Trade-in Sales

¥1.1T
Consumer Goods

Fiscal Expenditure Growth

7.2%
Jan-Apr YoY

China's economy showed mixed signals this week with manufacturing PMI rising to 49.5%, up 0.5 percentage points from April, though still below the expansion threshold. The composite PMI output index reached 50.4%, indicating continued overall economic expansion. Meanwhile, the trade-in policy achieved remarkable success with consumer goods sales exceeding ¥1.1 trillion by May 31st.

Tax Policy
Comprehensive Credit Management
State Administration of Taxation released the "Tax and Fee Credit Management Measures," effective July 1, 2025, incorporating social insurance fees and non-tax revenue into enterprise tax credit evaluation for the first time, affecting over ¥10 trillion in revenue.
Environmental
Resource Market Reform
Central Committee offices issued "Opinions on Improving Market-oriented Allocation of Resource and Environmental Elements," targeting completion of carbon emissions rights, water use rights, and pollution discharge rights trading systems by 2027.
Development Zones
Investment Optimization
Ministry of Commerce released 16 measures to support national-level economic and technological development zones in improving investment attraction quality, with enhanced guarantees for land, talent, and capital elements.

Policy Analysis

This week's policy releases demonstrate China's commitment to comprehensive economic governance reform. The expansion of tax credit evaluation to include social insurance and non-tax revenue creates a more holistic enterprise credit assessment system, directly impacting financing opportunities and tax conveniences for businesses. The resource allocation reform focuses on market-based mechanisms for environmental elements, aligning with China's carbon neutrality goals.

The development zone optimization measures represent a strategic move to enhance China's investment attractiveness amid global economic uncertainties. By strengthening factor guarantees and institutional innovations, these policies aim to maintain China's competitive edge in attracting high-quality foreign investment, particularly in advanced manufacturing and technology sectors.

Economic Recovery Indicators

The economic data reveals a recovery pattern characterized by policy-driven momentum. While manufacturing PMI remains below the expansion line, the improvement trend is evident. The remarkable success of the trade-in policy, with over 4.12 million vehicle applications and 77.6 million home appliances sold, demonstrates effective demand-side stimulus measures driving consumption recovery.

Tech Market Overview

China's technology sector exhibited robust innovation across multiple domains this week, spanning green energy, electric vehicles, artificial intelligence, and smart manufacturing. The implementation of national green data center standards and breakthrough achievements in EV delivery volumes highlight China's technological leadership in sustainable development and digital transformation.

Green Data Centers

246
National Certified

Xiaomi EV Delivery

28,000+
May 2025

Smart Home Devices

5.3B
Tmall Genie Ecosystem

Tech Frontiers

Green Data Center Standards: China's first national standard for green data center evaluation officially implemented, establishing comprehensive guidelines for energy efficiency with national centers achieving average PUE of 1.26.
EV Market Leadership: Xiaomi delivered over 28,000 vehicles in May with YU7 entering mass production in July. BYD unveiled Sealion 06EV at Guangdong-Hong Kong-Macao Auto Show, priced 120,000-150,000 RMB.
Advanced Materials: South China University of Technology developed one-dimensional high-entropy oxides (1D-HEO) with exceptional performance in extreme environments, promising applications in aerospace and corrosive environment devices.
Clean Energy Infrastructure: Three Gorges Group announced successful commissioning of Xiangjiaba Hydropower Station Unit 8, marking completion of comprehensive system-wide equipment upgrades for enhanced generation capacity and operational safety.
AI Innovation: Tencent ARC Lab and City University of Hong Kong launched Video-Holmes benchmark for multimodal large model reasoning capabilities. Huawei's Yu Chengdong announced Q4 2025 commercial deployment of highway L3 autonomous driving.

The technology landscape demonstrates China's strategic focus on sustainable innovation and intelligent transformation. The green data center standard implementation reflects China's commitment to carbon neutrality goals, while establishing technical leadership in environmentally responsible digital infrastructure. The convergence of AI capabilities with physical infrastructure, from autonomous driving to smart manufacturing, indicates accelerating technology commercialization.

Electric vehicle sector achievements, particularly Xiaomi's delivery milestone and BYD's market expansion, showcase China's dominance in new energy vehicle technology. The development of advanced materials and clean energy infrastructure positions China at the forefront of next-generation industrial capabilities, supporting both domestic transformation and global technology leadership ambitions.

Selected News

Tech News List
June 1, 2025

China's First National Green Data Center Standard Takes Effect

The national standard "Green Data Center Evaluation" officially implemented, providing comprehensive guidelines for energy efficiency, green design, procurement, operation and services. China has built 246 national green data centers with average PUE of 1.26.

Reference

June 1, 2025

BYD Sealion 06EV Debuts at Guangdong-Hong Kong-Macao Auto Show

BYD unveiled its electric mid-size sedan Sealion 06EV with pricing range of 120,000-150,000 RMB, built on e-platform 3.0 Evo and featuring advanced intelligent driving assistance systems. Market launch expected in June.

Reference

June 1, 2025

Xiaomi Auto Achieves Record May Delivery of 28,000+ Vehicles

Xiaomi announced May delivery exceeded 28,000 units with YU7 model scheduled for mass production in July. SU7 cumulative deliveries reached 258,000 units, demonstrating strong market performance.

Reference

June 1, 2025

Scientists Develop One-Dimensional High-Entropy Oxides for Extreme Environments

South China University of Technology and University of Illinois Chicago successfully synthesized 1D-HEO materials showing exceptional mechanical properties and stability under ultra-high temperature, high pressure and corrosive conditions.

Reference

June 1, 2025

Huawei Executive Announces Highway L3 Autonomous Driving Commercial Deployment

Huawei's Yu Chengdong stated the company's smart driving technology leads the industry, with highway L3 autonomous driving expected to achieve commercial use by Q4 2025.

Reference

May 30, 2025

Panasonic and Alibaba Cloud Partner on AI Smart Home Development

Panasonic Appliances (China) and Alibaba Cloud signed AI cooperation agreement to jointly develop intelligent home appliance AI agents, promoting globalization of smart home industry.

Reference

Market & Policy News List
May 31, 2025

China Expands Tax Credit Evaluation System to Include Social Insurance

State Administration of Taxation released new Tax and Fee Credit Management Measures, effective July 1, 2025, incorporating social insurance fees and non-tax revenue into enterprise tax credit evaluation for the first time, affecting over ¥10 trillion in revenue.

Reference

May 31, 2025

China's Manufacturing PMI Rises to 49.5% in May

National Bureau of Statistics data showed manufacturing PMI increased 0.5 percentage points to 49.5% in May, while non-manufacturing business activity index reached 50.3% and composite PMI output index hit 50.4%, indicating continued economic expansion.

Reference

June 1, 2025

Consumer Goods Trade-in Sales Exceed ¥1.1 Trillion

National trade-in policy achieved remarkable success with total sales breaking ¥1.1 trillion, including 4.12 million vehicle applications and 77.6 million home appliances sold, effectively stimulating consumption market recovery.

Reference

May 27, 2025

Commerce Ministry Issues Development Zone Reform Plan

Ministry of Commerce released 16 measures to support national-level economic and technological development zones in improving investment attraction quality, strengthening factor guarantees including land, talent, and capital.

Reference

May 30, 2025

Central Government Advances Environmental Market Reform

CPC Central Committee and State Council issued "Opinions on Improving Market-oriented Allocation of Resource and Environmental Elements," targeting completion of carbon emissions rights, water use rights, and pollution discharge rights trading systems by 2027.

Reference