An aerial view of Longhua. Photos by Chen Jianhua

Longhua District has been named among China’s 50 most active regions for venture capital for the first time, underscoring the growing role of government-backed investment in developing the district’s technology industries.

The recognition was included in a series of 2025-2026 rankings recently released by Rongzhong Research. The Longhua District Government Guidance Fund was also recognized as a leading district- or county-level government investment fund, while its operator, Shenzhen Longhua Industrial Capital Investment Co., Ltd. (Longhua Capital), was included among the top 50 local government guidance funds for risk management.

Li Ying, chairperson of the company, also received an award recognizing investment professionals representing limited partners.

Government guidance funds use public capital to attract private and institutional investment into industries identified as strategically important. In Longhua, the approach is designed to support companies throughout their development, from seed-stage ventures to mature businesses and industrial mergers and acquisitions.

Three-tier fund structure

Founded in 2020, Longhua Capital manages a three-tier system comprising industrial, policy-oriented and angel funds.

By the end of 2025, the company’s total assets and subscribed fund commitments had each exceeded 10 billion yuan (US$1.39 billion). Its network of subfunds had grown to more than 100 billion yuan in total capital, with a reported fiscal capital leverage ratio of 12 times.

The subfund network had invested in more than 2,700 projects and supported 219 companies that later went public, according to Longhua Capital.

Its industrial funds are operated in partnership with investment institutions including HongShan, Shenzhen Capital Group and China Fortune-Tech Capital. Four policy-oriented subfunds have also been established to support industries included in Shenzhen’s “20+8” strategic emerging and future industry clusters.

At the early-stage end of the market, Longhua established a district-level angel fund of funds in 2021. The fund has committed capital to seven angel subfunds and one seed fund, helping create a subfund portfolio exceeding 2 billion yuan.

In 2025, Longhua Capital also partnered with a Longhua-based immunology research institute and Redhill Capital to establish the district’s first early-stage fund dedicated to medical devices and biomedicine.

Investment tied to industrial development

Leju Robotics’ KUAVO humanoid robot, powered by Huawei Cloud’s Pangu large model for embodied AI, performs a scanning task in an industrial setting in Longhua.

Longhua’s government guidance fund has expanded beyond subfund investment to make direct investments in selected companies.

In October 2025, it invested 100 million yuan in Leju Robotics, a humanoid robotics company whose products have been delivered in batches to markets including the United States, Europe and the Middle East. A pilot production line for the company’s humanoid robots began operating in Longhua this year.

Beyond supplying capital, Longhua Capital links its investments with industrial development in the district. It participates in project assessments before investment decisions are made and provides services to companies after deals are completed.

When Longhua Capital partnered with China Fortune-Tech Capital to establish a 7-billion-yuan semiconductor fund, it became involved in evaluating prospective investments and their underlying assets. The fund’s management company later moved its headquarters from Shanghai to Longhua.

The fund has since invested in 11 Longhua projects, including Shenzhen Guihua Intelligent Technology Co., Ltd. and Shenzhen Angstrom Excellence Technology Co., Ltd.

Longhua Capital has also helped businesses secure office and production space, recruit employees, seek out orders and connect with potential investors. Its cooperation with Long-Z Capital contributed to Cornerstone Robotics moving its headquarters to Longhua.

The premises of Shenzhen Angstrom Excellence Technology Co., Ltd. in Longhua District.

Financing services reach local businesses

To connect capital with smaller businesses, Longhua Capital conducts industry-focused roadshows in the district’s six subdistricts. The events are tailored to local industrial strengths, such as fashion in Dalang and intelligent terminals in Guanlan.

The company has also partnered with banks to offer the Longhua Capital Loan program. Eligible companies included on a designated list can obtain loans at below-market interest rates without conventional collateral requirements.

Twenty-one financial service stations across the district have provided assistance to more than 600 businesses.

Longhua Capital’s investments currently concentrate on semiconductors, health care, artificial intelligence and the low-altitude economy. In semiconductors alone, its fund network has made 293 investments covering areas including chip design, manufacturing equipment and sensors.