China Market Weekly Update

2025/06/09 - 2025/06/15

Weekly Investment Overview

Largest AI Recruitment Plan

60% Increase
Baidu

Flying Car Orders

Nearly 1,000
GAC GOVY AirCab

Largest Service Trade Fund

10 Billion
Jinbo Bio & Joinn Laboratories

European Market Investment

$20 Billion
BYD

IPO Market Cap

70+ Billion
Insta360

This week's Chinese investment market showed remarkable vitality across multiple sectors. Artificial intelligence (AI) and new energy vehicles emerged as investment hotspots, with significant milestone events occurring in both fields. The capital market was also active, with multiple IPOs and strategic funding rounds demonstrating strong confidence in China's innovation ecosystem.

This week's investment activity analysis reveals Information Technology leading with 16 deals, followed by Manufacturing (11 deals) and Healthcare (9 deals). From an investment scale perspective, Enterprise Services attracted the highest total investment amount of 1.761 billion yuan, with Honghe Technology securing the largest single funding round of 1.575 billion yuan.

Geographically, investment activity is primarily concentrated in Jiangsu Province, Guangdong Province, Beijing, Zhejiang Province, Shanghai, Shandong Province, Anhui Province, Fujian Province, Shaanxi Province, and Jiangxi Province. Jiangsu Province currently leads with 20 deals totaling 1.453 billion yuan, demonstrating its strong position in China's innovation ecosystem.

Investment Highlights

Largest AI Recruitment Plan: Baidu announced its largest-ever recruitment initiative with AIDU plan increasing hiring by over 60% compared to last year, with no salary caps, demonstrating its commitment to AI talent acquisition.
Flying Car Breakthrough: GAC GOVY AirCab received nearly 1,000 intent order bookings within 24 hours, with plans to begin air-ground transportation demonstrations by end of 2025.
Largest Service Trade Fund: Jinbo Bio and Joinn Laboratories jointly launched the Service Trade Innovation Development Guidance Fund Phase II with a total scale of 10 billion yuan, focusing on health technology and digital economy.
Global Expansion Investment: BYD's Executive VP Li Ke revealed plans to invest $20 billion in the European market over the coming years, where BYD's sales have recently surpassed Tesla.
Record IPO Performance: Insta360 successfully listed on A-share market as the "First Smart Imaging Stock," with its share price surging 285% on opening, reaching a market cap exceeding 70 billion yuan.
Quantum Investment Initiative: National Fortune Quantum's subsidiary Fuqiang Asset Management is preparing to establish the "Quantum Bit Opportunity Fund" to invest in global quantum technology industries and digital assets.

The investment landscape this week highlights China's accelerating transition toward high-tech industries and innovation-driven development. The AI sector shows particular strength, with Baidu's aggressive talent acquisition strategy and significant funding for companies like Bola New Media and Kensee, which received strategic investments of 100 million yuan and completed a new financing round respectively.

In the new energy vehicle and flying car segments, we're seeing both technological breakthroughs and capital commitments. NIO CEO William Li's renewed emphasis on profitability by Q4 this year signals that the massive investments in technology and infrastructure are beginning to yield returns. Meanwhile, GAC's GOVY AirCab's strong pre-orders indicate market confidence in China's low-altitude economy development.

The establishment of large-scale funds, such as the 10-billion-yuan Service Trade Innovation Development Guidance Fund and the Quantum Bit Opportunity Fund, demonstrates institutional investors' strategic focus on emerging sectors. These funds will likely accelerate the commercialization of advanced technologies and strengthen China's position in quantum computing and digital economy.

China Market & Policy Weekly Update

Private Economy Support

360+ Billion
Shandong Province

Foreign Investment Focus

14 Measures
Anhui Province

Auto Industry Payables

960.93 Billion
12 Listed Auto Companies

This week saw significant policy developments aimed at strengthening China's economic resilience and industrial competitiveness. Provincial governments have introduced comprehensive support measures for foreign investment, private economy development, and industrial transformation, while national authorities released new regulatory frameworks for advanced therapeutic products and environmental standards.

Investment Attraction
Anhui Foreign Investment Action Plan
The Anhui Provincial Department of Commerce and Development Reform Commission jointly released the "Anhui Province Foreign Investment Stabilization Action Plan" with 14 measures focusing on biopharmaceuticals, new energy, and AI industries, planning 22 "Overseas Guest Roundtable" activities in 2025.
Private Economy Support
Shandong Financial Support Policies
Shandong Provincial Department of Finance issued "Several Financial Policies to Further Support High-Quality Development of Private Economy," planning direct investments exceeding 360 billion yuan over the next three years, driving financial and social investments over 2 trillion yuan.
Advanced Therapeutics
ATMP Classification Guidelines
The National Medical Products Administration's Center for Drug Evaluation released draft guidelines on the scope, classification and interpretation of Advanced Therapy Medicinal Products (ATMPs), aiming to promote the development of cell and gene therapy industries.

Policy Analysis

Provincial governments are taking increasingly targeted approaches to economic development, with Anhui focusing on attracting foreign investment in high-tech sectors through organized engagement activities, while Shandong is committing substantial financial resources to support private enterprise innovation and transformation. These localized initiatives complement national strategies and demonstrate China's multi-level approach to economic governance.

The regulatory clarification for Advanced Therapy Medicinal Products represents a significant step in standardizing China's rapidly growing cell and gene therapy sector. By establishing clear definitions and classifications aligned with international standards, China is creating a more predictable environment for both domestic and international biopharmaceutical companies to develop innovative therapies.

The automotive industry's efforts to shorten supplier payment periods to no more than 60 days signals a response to government pressure to improve supply chain resilience and support smaller businesses. This development, alongside the significant accounts payable figures (960.93 billion yuan, up 15.05% year-on-year), reflects the ongoing adjustment of industry practices to align with anti-monopoly and fair competition policies.

The confluence of policies across different regions and sectors indicates a coordinated effort to balance immediate economic stability with longer-term industrial upgrading. The emphasis on government investment funds as a tool for directing capital toward strategic industries suggests that state-guided investment will continue to play a significant role in China's economic development model.

For international businesses, these developments present both opportunities and challenges. The explicit focus on attracting foreign investment in specific high-tech sectors offers clear entry points, while the strengthening of domestic enterprises and supply chains may intensify competitive pressures. Companies with technologies or capabilities in biopharmaceuticals, new energy, AI, and environmentally compliant manufacturing may find a more receptive policy environment, particularly if they can align with China's industrial upgrading objectives.

Tech Market Overview

China's technology sector displayed remarkable momentum this week, with breakthroughs in brain-computer interfaces, flying vehicles, and enterprise AI solutions. The new energy vehicle market continued its explosive growth with sales exceeding 1 million units in May, while Chinese companies made significant strides in intelligent driving technologies and quantum research.

First Invasive BCI Clinical Trial

Global #2
Chinese Academy of Sciences

NEV Market Penetration

52.9%
May 2025 Data

Advanced Driver Assistance

79%
BYD Penetration Rate

Global Panoramic Camera

67.2%
Insta360 Market Share

Tech Frontiers

First Brain-Computer Interface Clinical Trial: China successfully conducted its first invasive brain-computer interface clinical trial, becoming the second country globally to enter the clinical stage of this technology, with participants able to control computers using only their thoughts.
Flying Car Pre-Orders: GAC GOVY AirCab received nearly 1,000 intent orders within 24 hours, with plans for commercial production by end of 2026, featuring over 90% carbon fiber usage and 5G connectivity.
Magnetic Star Burst Theory: Chinese Academy of Sciences Yunnan Astronomical Observatory team was first to extend solar eruption theory to magnetar environments, finding the "critical key" to magnetar super-eruptions.
Grid-Forming Wind Turbine Certification: Goldwind's GW155-4.5MW grid-forming wind turbine passed China Electric Power Research Institute testing, receiving the country's first hardware-in-the-loop test report under new regulations.
Micro-LED Wafer Testing Breakthrough: Tianjin University research team achieved breakthrough in non-destructive testing technology for micro-LED wafers, using flexible probe arrays with contact pressure one ten-thousandth that of traditional rigid probes.
First Deep-Sea Digital Intelligence System: China officially released the world's first deep-sea seamount digital intelligence system, opening AI models and datasets to promote deep-sea exploration and sustainable development planning.

China's technological landscape is showing remarkable advancement in both fundamental research and commercial applications. The successful clinical trial of invasive brain-computer interface technology marks a significant milestone, establishing China as only the second country after the United States to reach this stage. This breakthrough, achieved through collaboration between the Chinese Academy of Sciences and Fudan University's Huashan Hospital, demonstrates China's growing capabilities in complex neuroscience research and medical technology innovation.

The transportation sector is witnessing rapid transformation with the development of flying vehicles. Both GAC GOVY AirCab and XPeng AeroHT are making substantial progress toward commercializing air mobility solutions, with GAC's impressive pre-order numbers suggesting significant market interest. These developments indicate China is positioning itself as a leader in the emerging low-altitude economy, combining aeronautical engineering with automotive manufacturing expertise.

In energy innovation, Goldwind's certification for grid-forming wind turbines represents an important advance in renewable energy integration. This technology enables wind turbines to independently establish power grids and freely switch between operating modes, reducing the volatility risks associated with high proportions of renewable energy. Similarly, the breakthroughs in micro-LED wafer testing and deep-sea digital intelligence systems demonstrate China's commitment to developing critical technologies that support both industrial advancement and environmental sustainability.

Selected News

Tech News List
June 15, 2025

China Successfully Conducts First Invasive Brain-Computer Interface Clinical Trial

China has successfully conducted its first invasive brain-computer interface clinical trial, becoming the second country globally to enter the clinical stage of this technology. The project was jointly completed by the Chinese Academy of Sciences Brain Science and Intelligent Technology Center of Excellence and Fudan University's Huashan Hospital. The test subject is now able to control computers for gaming and sending text messages using only their thoughts. The device uses the world's smallest and most flexible neural electrodes with high biocompatibility, bringing hope to patients with spinal cord injuries and amyotrophic lateral sclerosis.

Reference

June 15, 2025

Chinese Academy of Sciences Team First to Extend Solar Eruption Theory to Magnetar Environments

A research team from the Chinese Academy of Sciences Yunnan Astronomical Observatory has for the first time extended solar eruption theory to magnetar environments, discovering the "critical key" for magnetar super-eruptions. The research is based on the CME theory of solar eruptions and established a three-dimensional magnetic flux rope catastrophe model for magnetar giant flares, revealing the conditions required for giant flares and providing theoretical basis for understanding the most violent energy eruption events in the universe.

Reference

June 14, 2025

GAC GOVY Flying Car Receives Nearly 1,000 Pre-Orders Within 24 Hours

GAC GOVY has announced that its new flying car GOVY AirCab received nearly 1,000 intent order bookings within 24 hours and plans to start air-ground combined transportation demonstrations by the end of 2025, with airworthiness certification and mass production delivery scheduled for completion by the end of 2026. The GOVY AirCab has an official guide price not exceeding 1.68 million yuan, uses aviation-grade carbon fiber composite materials with a carbon fiber usage rate exceeding 90%, reducing overall weight by over 30%, and features 5G networks and L4 level intelligent driving capabilities, primarily intended for low-altitude tourism transportation.

Reference

June 13, 2025

XPeng AeroHT Flying Car Completes China's First Wireless Communication Performance Test

XPeng AeroHT has announced that its flying car has successfully completed China's first wireless communication performance test, with plans to begin mass production and delivery next year. The test ensures flight safety and stability, marking an important step toward practical application of flying car technology, which is expected to change the future urban transportation landscape.

Reference

June 10, 2025

China Officially Releases World's First Deep-Sea Seamount Digital Intelligence System

China has officially released the world's first deep-sea seamount digital intelligence system, opening AI models and datasets to promote the deep sea development into a digital intelligent era. The system was developed by the China Ocean Administration in conjunction with Zhejiang Lab and others, aiming to promote deep sea investigation and simulation through AI technology, explore sustainable development solutions, and actively participate in global ocean governance.

Reference

Market & Policy News List
June 13, 2025

Anhui Province Releases Foreign Investment Stabilization Action Plan with 14 Measures

The Anhui Provincial Department of Commerce and Provincial Development and Reform Commission have jointly issued the "Anhui Province Foreign Investment Stabilization Action Plan," proposing 14 measures with a focus on biopharmaceuticals, new energy, energy conservation and environmental protection, intelligent manufacturing, and artificial intelligence industries. The plan includes organizing 22 "Overseas Guest Roundtable" activities in 2025 to attract and stabilize foreign investment.

Reference

June 12, 2025

Auto Industry Accounts Payable Reaches 960.93 Billion Yuan, Companies Commit to 60-Day Payment Terms

The total accounts payable and notes of 12 major listed auto companies has reached 960.93 billion yuan, a year-on-year increase of 15.05%, accounting for 55.39% of their overall current liabilities. Multiple auto companies have promised to shorten supplier payment periods to no more than 60 days, responding to the national policy to counter excessive competition in the automotive industry.

Reference

June 11, 2025

Shandong Province to Invest Over 360 Billion Yuan to Support Private Economy

The Shandong Provincial Department of Finance has issued "Several Financial Policies to Further Support High-Quality Development of Private Economy," planning direct investments exceeding 360 billion yuan over the next three years, driving financial and social investments over 2 trillion yuan, to support private enterprises in technology innovation, intelligent transformation, and industrial upgrading.

Reference

June 11, 2025

National Medical Products Administration Releases Draft Guidelines for Advanced Therapy Medicinal Products

The National Medical Products Administration's Center for Drug Evaluation has released the "Scope, Classification and Interpretation of Advanced Therapy Medicinal Products (Draft for Comments)," clarifying the definition and classification of "Advanced Therapy Medicinal Products" (ATMPs) in China, aiming to promote the development of cell and gene therapy (CGTs) industry.

Reference

June 11, 2025

Insta360 Lists on A-Share Market as "First Smart Imaging Stock" with Market Cap Exceeding 70 Billion Yuan

Insta360 has officially listed on the A-share market, becoming the "First Smart Imaging Stock" with an IPO issue price of 47.27 yuan/share, raising 1.938 billion yuan. The stock surged 285% on opening, with a total market cap exceeding 70 billion yuan. Insta360 has ranked first in global panoramic camera market share for six consecutive years, with a market share of 67.2% in 2023.

Reference