China's venture capital firms are rushing to raise an estimated $35bn for at least 60 new dollar-denominated funds after three years of record-low fundraising. HSG, IDG Capital, Matrix Partners China, and Future Capital are among firms marketing new funds, while Zhen Fund and Qiming have recently closed theirs. A revival in Chinese tech listings and breakthroughs from AI firms like Moonshot AI and Deep Seek has reignited investor interest, with some describing backing Chinese AI as a hedge against US market bets. However, experts caution this is not a return to the heyday of Chinese VC. "This isn't a China VC boom yet," said Ricardo Felix of Asante Capital.

The fundraising surge follows a prolonged downturn driven by a slowing domestic economy, US investment restrictions, and a drought in exit opportunities. Many US investors remain sidelined by Biden-era restrictions on sensitive sectors, while European and Middle Eastern investors show growing interest. Several investors describe the environment as a "buyers' market," with LPs negotiating more favourable terms.

Meanwhile, smaller specialist funds led by one or two managers are targeting niche areas like robotics and AI agents.