Private Equity Development and Investment Research in China under the Background of Sino-U.S. Decoupling

Abstract

This paper focuses on exploring the development and investment directions of Chinas private equity funds against the backdrop of Sino-U.S. decoupling. This includes U.S. dollar-denominated private equity funds, Renminbi-denominated private equity funds, and corporate venture capital. The study reveals that the enthusiasm for U.S. dollar-denominated private equity funds in the domestic market has significantly decreased, while the market size of Renminbi-denominated private equity funds has grown. Private equity fund investments have shifted towards advanced manufacturing and domestically developed alternative enterprises. Corporate venture capital has also transitioned from being primarily dominated by internet giants to focusing on high tech industry leaders. In light of adapting to the new landscape of Sino-U.S. decoupling, investments in high-tech industries and advanced manufacturing, support for domestic alternatives, and independent innovation are expected to become the markets primary trends. Government guidance and support will wield a profound influence on market development, with Renminbi-denominated private equity funds poised to capture larger market shares and investment opportunities.