Can you believe it? The most successful venture capital organization in China over the past 10 years is... the Hefei municipal government.
China's memory chip giant, Changxin Memory Technologies, is about to go public. The company is expected to post around 150 billion yuan in profit for 2026, with a projected market valuation of 2–3 trillion yuan (or even 4 trillion). The Hefei government holds 36.79% of Changxin. Do the math yourself.
Hefei also holds 5.4% of BOE and 8% of NIO. On top of that, it has stakes in other tech companies like OFILM, Nexchip, and Sj Semiconductor. The total value of these equity holdings is already in the hundreds of billions of yuan.
What's truly impressive is that the Hefei government made these investments when those companies were still relatively small—inviting them to set up factories in the city, injecting public capital, and helping them grow. In return, Hefei hasn't just seen its equity appreciate; it has also gained massive employment and tax revenue, transforming itself from an unnoticed landlocked second-tier city into a true leader in China's tech innovation landscape. It's absolutely remarkable.