In 2024, China’s private equity (PE) and venture capital (VC) sectors faced significant challenges, with a notable decline in IPO activity. Despite a 12% rise in the Shanghai Composite Index due to government stimulus measures, the primary market remains stagnant, as PE firms are struggling with a “capital winter.” New fund establishments dropped 41%, and IPOs decreased by over 52%. Although government support promises a potential recovery, the tightening of IPO regulations poses ongoing challenges. Alternative exit routes, like mergers and acquisitions (M&A), are being explored, but many investors still prefer IPOs as their primary exit strategy.