State capital and tighter rules are rewiring China’s venture funding

New fund-registration rules reportedly strengthen state-backed platforms and concentrate venture capital in AI, chips and biotech. DeepSeek’s reported talks with CITIC Securities over a domestic IPO could become a landmark test of China’s ability to convert AI momentum into durable revenues and public-market financing, while the emerging ‘dumbbell’ structure may narrow private-sector funding and amplify bubble concerns.