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China prepares next phase of national SME fund to boost tech start-ups and IPOs
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Frank Chenin ShanghaiPublished: 8:37pm, 3 Sep 2026
China will soon launch the second phase of a National SME Development Fund with a focus on IPO incubation and channelling private capital into backing innovative, early-stage entities and projects with long-term prospects in hard tech.
The fund’s second phase was confirmed as the Ministry of Industry and Information Technology (MIIT), together with nine other ministries and agencies, released China’s 15th five-year plan for promoting the development of small and medium enterprises (SMEs).
The second phase would enhance support for inclusive financing and initial public offering readiness, MIIT officials said at a State Council Information Office press conference in August.
The national fund would provide a “guiding and catalytic role”, the officials said, expressing confidence that it would continue to attract and pool more venture and private capital for investment in tech-focused SMEs.
The fund’s first phase was established in September 2015 and as of March this year had spawned 46 sub-funds with a total capital pool exceeding 120 billion yuan (US$17.6 billion) invested in more than 2,000 enterprises, as well as 92 IPOs, according to data from China Galaxy Securities.
With an overall return of around 15 per cent, the fund had also completed exits from over 200 funded projects reached specific milestones.
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