Q3 has emerged as the best quarter for startup fundraising in Greater China so far this year, driven by a surge in big-ticket transactions. Funding for startups headquartered in mainland China, Hong Kong, Taiwan, and Macau rose 18.6% from Q2 to surpass $12.8 billion, while the number of investments also increased significantly by 15.4% quarter-over-quarter (QoQ) to 658, according to DealStreetAsia–DATA VANTAGE’s latest report, Greater China Deal Review: Q3 2025.
On a year-over-year (YoY) basis, Q3 2025 also fared better with a 33.5% increase in deal value and a 1.1% uptick in deal count.
Q3 wraps up as 2025’s strongest quarter so far
From January-September, 1,855 startups in Greater China collectively raised over $33.2 billion in financing. The number of investments was up 13.6% from the same period in 2024, although their fundraising total was down by 20.6%.
Megadeals drive funding growth
There were 23 megadeals—investments worth $100 million or above—in Q3, which collectively attracted almost $6.7 billion in financing, representing 52.2% of the total proceeds for July-September.
Quarterly megadeal value showed continuous growth from Q1-Q3 before touching the year’s high in the latest quarter, driven by one billion-dollar investment funded by state-linked investors in China.
In the biggest financing of Q3, China Fusion Energy was set up in July with nearly $1.6 billion from state-owned nuclear and energy firms to lead the commercialisation of eco-friendly nuclear fusion power in the country.
23 megadeals rake in 52.2% of Q3 financing
Across industries, Semiconductor led with the most transactions and most capital raised in the quarter. After a drop in Q2, the industry bounced back with 110 deals raising close to $2.5 billion.
The deal count grew by 18.3% from Q2. Meanwhile, the total sectoral funding was almost 2.3x the previous quarter’s, largely thanks to five megadeals in companies including Yongxiang, Lightelligence, Jingrui Guangzhao, Inventchip Technology, and Sunrise, which collectively amassed over $1.3 billion.
As a key battleground for China amid its tech rivalry with the US, semiconductor is expected to remain the darling of China-focused tech investors.
Business Support Services, Materials, and Aerospace followed semiconductor as some of the most popular industries among Greater China-focused investors, with the completion of 98, 41, and 37 startup investments in Q3, respectively.
IPO activity picks up in 9M
Compared with the same period last year, the initial public offering (IPO) activity by Greater China companies showed growth in the first nine months, although the market has yet to return to its peak levels seen around 2021.
The nine months from January-September saw the completion of 130 Greater China IPOs across exchanges in mainland China, Hong Kong, and the US, with nearly 15.2 billion in IPO proceeds. This marks a 6.6% increase in the number of IPOs and a 67.5% surge in the overall IPO funds raised in comparison to 9M 2024, according to Dealogic data analysed by DealStreetAsia.
Q3 records fewer IPOs but higher proceeds
Across different listing locations, the mainland A-share market—which includes exchanges in Shanghai, Shenzhen, and Beijing— maintained its status as the key IPO platform attracting Greater China issuers with targeted regulatory reforms in favour of homegrown tech innovations.
In 9M 2025, 71 Greater China companies, or 54.6% of the total, completed their A-share IPOs. Their IPO proceeds of more than $10 billion represented 66.2% of the overall IPO funds raised by Greater China companies in the period.
In Hong Kong, the city’s Main Board recorded 38 IPOs by Greater China companies in 9M, with over $4.4 billion in their combined IPO proceeds. Improved valuation and liquidity not only made Hong Kong attractive to Greater China issuers but also IPO-ready companies overseas, setting the stage for the city to top the global stock exchange rankings in 2025.
Although Nasdaq and the New York Stock Exchange (NYSE) are still among the top exchanges for IPO fundraising by global companies, the attraction of Wall Street to Greater China issuers has clearly waned.
The number of IPOs by Greater China companies in the US dropped for the third consecutive quarter to its lowest in almost two years. Only three Greater China companies completed a first-time public share sale in the US in Q3, raising a mere $33.4 million, all on Nasdaq.
Nasdaq’s proposal in September to significantly increase listing and fundraising thresholds for companies principally operating in Greater China, if approved by the SEC, could see many small-cap companies turn to Hong Kong.
The Greater China Deal Review: Q3 2025 report has extensive data on:
- Quarterly startup fundraising trends
- Top deals of Q3 2025
- Most favoured industries by investors
- Top IPOs by Greater China firms in 9M 2025
- Insights from prominent China-focused private market participants
The report is available exclusively to DealStreetAsia–DATA VANTAGE subscribers. Subscribe/upgrade your subscription now to access our entire set of reports. Still not sure? Opt for a one-month trial for only $249 or reach out to subs@dealstreetasia.com for a demo.
