China’s investment in the Belt and Road Initiative increased by three-quarters to a record $213.5 billion in 2025, reports the Financial Times. This surge comes as Beijing sought to take advantage of wavering US influence around the world by increasing funding in development projects. 

The boost in new investment and construction deals was dominated by gas megaprojects and green power, says the FT, citing research by Australia’s Griffith University and the Green Finance & Development Center in Shanghai. Beijing signed 350 deals last year, up from 293 worth $122.6 billion in 2024. 

The boom in investment comes as tensions between the US and China over trade and technology disrupt supply chains and US President Donald Trump’s military interventions impact global energy markets. 

High-Flyer Quant, co-owned by DeepSeek founder and CEO Liang Wenfeng, recorded a return of 56.6% last year, reports the South China Morning Post. This ranks it second among China’s 10 top-performing large hedge-fund firms.

According to the ranking published on Monday by data provider Shenzhen PaiPaiWang Investment & Management, High-Flyer only trailed behind Lingjun Investment, which posted a return of 73.5% in 2025.

All the top performers were quantitative hedge funds, underscoring the popularity in China of using complex quantitative models to detect investment opportunities. “Quant funds” use mathematical and statistical techniques, together with automated algorithms and advanced quantitative models, to make investment decisions and execute trades.

Aridge, the flying car unit of XPeng, has tapped investment banks to prepare for an initial public offering in Hong Kong, reports Caixin, citing people familiar with the matter.

The company declined to comment, however speculation about a possible listing began in June 2025, when Aridge appointed Du Chao as CFO. Du, a veteran with nearly two decades of experience in investment banking and corporate finance, previously served as CFO of 17 Education & Technology, where he led the firm through its Nasdaq debut. His appointment is widely viewed as a strategic move aimed at paving the way for Aridge’s IPO.

A listing would serve as a key test of investor interest in China’s emerging “low-altitude economy” as Aridge moves closer to mass production of its dual-mode flying vehicle, targeted for 2026. Sources told Caixin the company had initially planned a US listing via Nasdaq but shifted course, opting for Hong Kong to take advantage of a revived IPO market offering stronger valuation prospects and greater financing certainty.

China’s industry regulator has pledged to provide more fiscal support for small-scale innovative firms in specialised industries, reports the South China Morning Post. The support for firms referred to as the country’s “little giants” are part of a range of measures designed to boost the country’s technological self-reliance and upgrade key industries.

Li Lecheng, the head of China’s Ministry of Industry and Information Technology, said that central authorities would implement a fresh round of fiscal support policies for small and medium-sized firms that lead the way in niche industries to “further strengthen enterprises as the core driver of technological innovation”.

According to Li, China will place a particular emphasis on developing future industries such as quantum technology, humanoid robots, brain-computer interfaces, deep-sea and polar exploration and 6G wireless internet, while revitalising traditional industries and accelerating progress in emerging industries.

X Square Robot, a China-based startup specializing in humanoid robotics, has raised RMB 1 billion yuan ($143 million) in a new funding round led by TikTok owner ByteDance and venture capital firm HongShan Capital Group, reports Caixin. The investment marks the latest sign of investor enthusiasm for China’s fast-evolving “embodied AI” sector—artificial intelligence systems capable of physical interaction.

The company announced the deal Monday, bringing its total funding to RMB 3 billion. The sizable capital injection underscores the growing momentum behind embodied AI in China, even as some industry experts caution that valuations may be outpacing commercial viability.

A mix of private and state-backed investors joined the latest round, including the Beijing Information Industry Development Fund and Shenzhen Capital Group, which invested through its AI-focused fund. Local government investment vehicles from Shenzhen’s Nanshan district and the city of Wuxi also took part. The new round follows earlier backing in May from Chinese tech giants Meituan and Alibaba Group.