China’s venture capital (VC) activity registered substantial growth during the first seven months of 2026, characterized by robust double-digit expansion in transaction count and a more than three-fold leap in capital deployment. The total number of VC deals announced in China increased by 34% during January–July 2026 compared to the same period in 2025, whereas the total disclosed funding value saw a year-on-year (YoY) surge of 213%, according to GlobalData, a leading intelligence and productivity platform.

Aurojyoti Bose, Lead Analyst at GlobalData, comments: “This underscores a pronounced recovery in large-ticket financing rounds and improved investor confidence across the country’s innovation sectors. Moreover, the performance cemented China’s position as the second-largest market in the VC landscape, standing just behind the US.”

An analysis of GlobalData’s Financial Deals Database reveals that China’s expansion stood in stark contrast to broader global trends, where deal-making activity remained subdued across several markets.

Globally, total VC deal volume contracted by 2% YoY, whereas total capital deployed experienced a massive 161% YoY expansion. Among key global peers, the US witnessed a modest 2% YoY uptick in deal volume alongside a 199% YoY surge in total funding value. The UK recorded marginal volume growth of 1% YoY accompanied by a 113% YoY increase in value. Conversely, India experienced headwinds, with transaction volume declining by 13% YoY and deal value recording constrained growth of 5% YoY.

China maintained its position as the second-largest venture destination globally across both volume and value metrics. During January–July 2026, the country accounted for a 22% share of the total number of VC deals announced globally during the period. Meanwhile, its share of global value stood at 9%.

By comparison, the US retained its commanding market dominance, generating 31% of worldwide transactions and 75% of global value. India and the UK each represented 7% of total volume, while securing 1% and 3% of global funding value, respectively.

Note: Historic data may change in case some deals get added to previous months because of a delay in disclosure of information in the public domain.