Lujiazui Forum Highlights 'Patient Capital' and Global Integration of Tech Sector

The Science and Technology Innovation Finance Conference of the 2026 Lujiazui Forum convened today, focusing on cross-border capital integration and the structural mechanisms required to fund early-stage technological research.

As a key part of the Lujiazui Forum, the conference's aim is to build a global platform connecting international financial institutions with technology firms to support Shanghai's dual development as an international financial center and a science and technology innovation hub.

Speaking at the opening session, Jin Penghui, deputy secretary-general of the Shanghai Municipal Government, reported that Shanghai's equity investment funds raised nearly 250 billion yuan (US$34.4 billion) in 2025, with tech-sector investments reaching nearly 135 billion yuan. Jin added that Shanghai's tech-focused STAR Market continues to lead domestic exchanges in total market capitalization and initial public offering (IPO) fundraising.

The event took place amid broader shifts in how Chinese technology companies secure institutional backing. On Tuesday, Chinese artificial intelligence firm DeepSeek was reported to have secured 50 billion yuan in its first external financing round. Beyond AI, Chinese tech firms are increasingly drawing interest from global investors, notably Middle Eastern sovereign wealth funds.

Against a backdrop of changing international geopolitics and discussions surrounding "de-dollarization," Middle Eastern sovereign wealth funds, including Saudi Arabia's Public Investment Fund (PIF), have steadily expanded their allocations in China.

This trend was examined during a roundtable focused on multi-level capital markets and "new quality productive forces" – a Chinese policy term pointing to innovation-driven, high-tech sectors. Panelists included Gionni Sessa, Head of AI Products at First Abu Dhabi Bank Group; and Tan Limin, CEO of Shanghai Westwell Technology, an AI and autonomous driving technology company that has established commercial operations in the United Arab Emirates.

"The share of new quality productive forces in the Chinese economy is expanding, which aligns closely with the investment targets of Middle Eastern capital," Wang Guangda, Secretary-General of the China-Arab Research Center on Reform and Development, told Shanghai Daily.

Wang noted that Middle Eastern sovereign funds act as "patient capital," prioritizing long-term horizons in areas such as biopharmaceuticals, AI, and integrated circuits – sectors that match Shanghai's designated pillar industries. "Capital's primary objective is profitability. As the global economic gravity shifts eastward, the movement of Middle Eastern capital toward China is a standard market phenomenon."

"Patient capital" was mentioned several times at the conference. The term, outlined in China's 15th Five-Year Plan (2026-2030), refers to investments that prioritize long-term returns over short-term gains. Following Beijing's call to support early-stage, small-scale, and "hard tech" enterprises, China established its National Venture Capital Guiding Fund in 2025. The fund mandates that at least 70 percent of its total capital be allocated to seed-stage and startup firms, capping individual investments at 50 million yuan for companies valued below 500 million yuan.

Despite these policy initiatives, challenges remain in converting scientific research into commercial products. Financial shortfalls persist during the initial "0-to-1" research and development phase, particularly within university tech-transfer systems.

"Finance and industry currently appear both very close and very far apart regarding tech-transfer commercialization," said Yang Lidong, general manager of the science park development company at the Shanghai University of Engineering Science. For early-stage projects that have not yet achieved market scale, Yang stated that financial institutions must offer proactive, localized, and tailored services by integrating directly with science parks and corporate operations.

Deepening the integration between finance and industry through platforms like the Lujiazui Forum's conference, particularly through targeted support for early-stage projects, is expected to help clear the "first mile" of technology commercialization and effectively align technological innovation with financial capital.