Asian Private Equity Surge: Investors Eye Chinas Tech-Driven Growth Amid Beijings Strategic Shift

Published: Wednesday, November 5, 2025 at 9:31 am

Asian Private Equity Firms Bet on China's Tech-Driven Growth

Private equity managers are expressing growing optimism about the future of China's economy, focusing on the nation's technological advancements and strategic goals. This positive outlook is fueled by China's push for technological independence and its rapid adoption of new technologies.

Jean Eric Salata, chairman of EQT Asia, highlighted that China's latest five-year plan is expected to strengthen its position in advanced manufacturing, spur investments in technology and artificial intelligence, and boost consumer spending. Salata expressed strong confidence in China's future, particularly in Hong Kong, citing the country's progress in automated manufacturing, such as the advanced automation at Xiaomi's electric vehicle facilities.

Zhang Lei, founder and chairman of Hillhouse Investment, emphasized China's strength in quickly commercializing artificial intelligence, predicting it will be a leader in AI applications. He pointed to rapid product iterations, lower costs, open-source models, and a large consumer base as key advantages.

Fred Hu, chairman and CEO of Primavera Capital, echoed this sentiment, citing China's engineering talent and substantial computing power, including its electricity generation capacity, as factors driving the AI revolution.

This optimism marks a shift for the private equity industry, which has faced challenges in recent years. Weak fundraising and geopolitical uncertainty, including U.S.-China tensions, have led to a decline in deal volumes and fund launches. Data indicates a significant drop in deals completed and funds raised in China compared to previous years.

However, a rebalancing of investment allocation is underway, as global investors reassess their portfolios. EQT's Salata believes that mainland China and Hong Kong will benefit from this portfolio reallocation, as investors seek diversification.

BNN's Perspective: While the enthusiasm from private equity firms is encouraging, it's important to acknowledge the geopolitical risks and economic uncertainties that persist. China's economic trajectory is closely tied to its technological advancements and its relationship with the global community. Investors should proceed with a balanced approach, carefully considering both the opportunities and potential challenges.

Keywords: Asian Private Equity, China, Technology, AI, Investment, Economic Growth, Hong Kong, Manufacturing, Automation, Geopolitics, Fundraising, Portfolio Reallocation.

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