CNBC’s The China Connection newsletter: From Didi to DeepSeek

2025-07-16 06:38:23

The Hong Kong Securities Stock Exchange said that for the first time, six Gong filled its main hall on July 9, 2025, where 5 companies and ETF were distinguished.

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This report from CNBC newsletter in CNBC for this week, which brings you visions and analyzes about what leads the second largest economy in the world. Every week, we will explore the largest business stories in China, and make a decrease in market movements and help you prepare for the next week. Like what you see? You can subscribe here.

The big story

There is a blow of excitement in the investment capital circles in China these days: foreign investors began to return to US dollars.

It is a result Deepseek from artificial intelligenceBesides the booth Public IPO Hong Kong On the right track to overcome Wall Street this year like The world’s biggest money collected. Beijing also helped to support companies in recent months.

The Hang Seng index of more than 20 % so far this year reflects optimism in the short term. Another sign comes from a word from Chinese investment capital companies that collect funds in US dollars again, After a dry talisman That was it VCS He moved to local investors with Yuan’s Chinese money.

Beijing -based Bai Capital said it started collecting a new $ 800 million fund in February and intended to close the first round in September. The company is supported by the Bertelsmann Group Global Global Group.

Bay said he is looking at a “strong interest” of the Fund submitted to the US dollar, which he will then use to invest in China -based companies. So far, the company has already invested in 10 companies planning the public the following year to two years.

Future Capital Discovery Fund, which is an early supporter to start operating high -flight electric cars I have carsHe told me that he raised a record of $ 210 million to the pioneering fund that the US dollar offers in the second half of last year.

“Once there is a donation window, we must quickly take the opportunity to raise funds,” said Menging Huang, a co -founder of the future company in Beijing, in Chinese, translated by CNBC. “This is completely different from the long practice of collecting US dollars from the market every few years.”

“Now we need to be very sensitive to total trends, especially the direction of relations between the main economies,” he said. The company, which calculates investors including sovereign wealth funds and standing from the Middle East, the United States, Europe, Japan and Southeast Asia, has plans to deploy capital for artificial intelligence agents and devices.

But it was a few difficult years for China Vcs and its limited partners.

In the world of VC, the money collection company is from a group of “limited partners”, which includes sovereign wealth funds, pension funds, university standing and family offices. While obtaining their salaries to manage the fund, VC then choose startups to return, and reaps a reward from the general subscriptions of companies that are shared with limited partners.

The repercussions about Didi New York, which dates back to Chinese horse riding Public subscription June 2021On the eve of the ruling Communist Party of the ruling 100^Y Anniversary – despite the multiple Warnings from Beijing About data privacy violations – he did not sit well With the organizers On both sides of the ocean. Didi was backed by a long list of prominent investors through several financing rounds, including and And Sequoia Capital.

China will later raising the tape of its companies that want to include it abroad, while Washington has increased its audit in American capital heading to China, which reduced the activity of fundraising on the mainland, especially for the main righteousness. Border investments.

It is worth noting that Sequoia Capital China split From her American father in 2023 and renamed under HSG. He did not respond to a request to comment on the latest donation collection plans for the US dollar. Other VCS, which has been woven or restructured their China’s GGVs Capital, which became the California -based matrix, which renamed Chinese operations as MPCI last year.

Eye on Letedance

Not everything is the same as it was in the years of subscription before DIDI.

Instead of giving money to the investment capital, many of the limited partners in Europe, the Middle East and Asia prefer to buy ownership shares directly in private companies such as Chinese Internet giants and Shahongshau, said Hop Show, an adventurous capital. She left Code Code Capital last year to start her own company, which is called 590 density, focusing on such deals, known as the second salaries, which include sales of one assets and risk of money.

Although the father of Beijing is based on his headquarters, it has not been publicly listed, the demand for his shares is so high that it is easy to liquidate or sell it mainly, as it will be in a public exchanging exchange. While the sellers tend to come mostly from the United States and Asia, Shaw said that buyers usually come from the European Union, the Middle East or Asia.

It is a great opportunity for returns.

She said on Tuesday that Budds’s evaluation increased from 245 billion dollars at the beginning of this year to 340 billion dollars, noting that investors began to accept uncertainty in stripping the United States.

Bytedance refused to comment on his evaluation.

The company has become a quiet force in the world of the Internet in China. Besides possessing a famous Chinese Tiktok reward called Douyin – which exceeded JD.com Last year for Be the second largest e -commerce platform through total sales – Bytedance has also developed Chatbot from the famous artificial intelligence called Doubao, along with the AI’s agent platform called CoZe.

Shaw pointed out that for technical investments such as artificial intelligence and robots, the necessary resources and capital, which makes it difficult for smaller startups. She said that purchasing a share in a large company, such as Bededance, with its various production lines, is mainly similar to purchasing a trading box for Amnesty International.

For example, TENCENT not only develops its artificial intelligence models and applications, but also invests in emerging AI. I reported an increase of about five times in profits from business partners and joint projects last year, as it rose from 5.8 billion yuan to 25.2 billion yuan For 12 months, according to the company’s annual report.

Global aspirations

The China VC world is no longer focused on the local market.

Quoted from the macroeconomic environment and technology trends, Bai Capital said that its investments will be divided between local and foreign startups. Bay said that half of its money will go to the China -looking companies that are looking to expand all over the world in entertainment, entertainment, AI and supply chains, while the other half of its money will focus on consumer opportunities, health care and technology in China.

Since 2019, Bai said it has invested in multiple rounds in Stori, a digital bank in Mexico with 3.6 million credit card users and 2.4 million deposits. “We believe that Stori’s success is not an isolated condition.”

The question is how long this VCS and their limited partners can remain enthusiastic. The Hong Kong Stock Exchange announced last week with its pride The most crowded day to end the subscriptions and the European Union of funds so far: With six Gong on the stage.

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In the market

China and Hong Kong shares were mixed on Wednesday amid a mixed trade in the region, where investors evaluated the US President Donald TrumpStatement of an initial business deal with Indonesia.

China’s main mainland CSI 300 He decreased by 0.35 %, while Hong Kong Hang Singh Fahress – Which includes major Chinese companies – gained 0.15 % from 1:12 pm local time. The main land data showed about 1.8 % year until now.