Factors Influencing Private Equity in the Yangtze River Delta Economy

Guanlian Chi; Yunxiao Liu

doi:10.54254/2754-1169/2025.BL29273

Advances in Economics, Management and Political SciencesOpen access

Factors Influencing Private Equity in the Yangtze River Delta Economy

Research Article

Open Access

Factors Influencing Private Equity in the Yangtze River Delta Economy

Guanlian Chi ^1* Yunxiao Liu ²

¹ Guangxi University of Finance and Economics

² No.1 Middle School of Zhengzhou

^*Corresponding author: chiguanlian@stu.gxufe.edu.cn

Published on 11 November 2025

AEMPS Vol.239

ISSN (Print): 2754-1177

ISSN (Online): 2754-1169

ISBN (Print): 978-1-80590-525-7

ISBN (Online): 978-1-80590-526-4

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Abstract

By the end of 2023, there were 21,625 private investment fund managers in mainland China, with 153,032 private equity funds on record, the scale of private equity funds reaching 20.32 trillion yuan. The development of private equity funds is rapid. Numerous studies indicate that private equity funds are emerging as a key vehicle for innovative capital formation. At the same time, the Yangtze River Delta economy achieves remarkable results. It accounts for 4% of China's land area, contributing approximately 30% of the country's national economic growth, and the private equity fund management scale accounts for around 40% of the country's total. As a result, the regional agglomeration of private equity funds examines the factors contributing to this phenomenon and its associated impacts. In this regard, this study selects data based on four driving factors: economy, innovation, finance, and foreign trade, and combines them with empirical analyses to assess the impact of regional factors on private equity in the Yangtze River Delta. Finally comes to the following conclusions: credit expansion, innovation, and foreign trade are the key driving forces that promote the establishment of funds and active investment. The stability of the macroeconomic conditions is the key to ensuring effective collection and smooth launch of private equity.

Keywords:

Yangtze River Delta, Private Equity, Regional Factors, Empirical Analysis.

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References

[1]. Amess, K., Stiebale, J. & Wright, M. (2016) The Impact of Private Equity on Firms' Patenting Activity. European Economic Review, 86, 147-160.

[2]. Tan, W. S., Pei, S. & Ding, P. et al. (2025) Venture Capital, Agglomeration Effects and Regional Innovation. Regional Finance Research, 22, 1-11.

[3]. Tian, Y. J. (2012) Research on Regional Agglomeration Effects of Venture Capital in China and Its Environmental Support Factors. Doctoral dissertation, Fudan University, 2, 1-8.

[4]. Wong, Z. et al. (2021) Financial Services, Spatial Agglomeration, and the Quality of Urban Economic Growth: Based on an Empirical Analysis of 268 Cities in China. Finance Research Letters, 43, 101-109.

[5]. China Securities Investment Fund Association (2024) Monthly Report on Private Fund Manager Registration and Private Fund Product Filing 16, 39-41.

[6]. Lerner, J., Sorensen, M. & Strömberg, P. (2011) Private Equity and Long-Run Investment: The Case of Innovation. The Journal of Finance, 66, 445-477.

[7]. Hu, H. (2022) Research on the Guiding Role of Government-Guided Funds in Regional Private Equity Investment . Doctoral dissertation, University of International Business and Economics, 32, 96-104.

[8]. Li, D. & Zhang, X. B. (2018) An Empirical Study on the Impact of Macroeconomic Factors on Private Equity Investment. Times Finance 12, 6-7.

References

[1]. Amess, K., Stiebale, J. & Wright, M. (2016) The Impact of Private Equity on Firms' Patenting Activity. European Economic Review, 86, 147-160.

[2]. Tan, W. S., Pei, S. & Ding, P. et al. (2025) Venture Capital, Agglomeration Effects and Regional Innovation. Regional Finance Research, 22, 1-11.

[3]. Tian, Y. J. (2012) Research on Regional Agglomeration Effects of Venture Capital in China and Its Environmental Support Factors. Doctoral dissertation, Fudan University, 2, 1-8.

[5]. China Securities Investment Fund Association (2024) Monthly Report on Private Fund Manager Registration and Private Fund Product Filing 16, 39-41.

[6]. Lerner, J., Sorensen, M. & Strömberg, P. (2011) Private Equity and Long-Run Investment: The Case of Innovation. The Journal of Finance, 66, 445-477.

[8]. Li, D. & Zhang, X. B. (2018) An Empirical Study on the Impact of Macroeconomic Factors on Private Equity Investment. Times Finance 12, 6-7.

Cite this article

Chi,G.;Liu,Y. (2025). Factors Influencing Private Equity in the Yangtze River Delta Economy. Advances in Economics, Management and Political Sciences,239,28-35.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

About volume

Volume title: Proceedings of ICFTBA 2025 Symposium: Data-Driven Decision Making in Business and Economics

ISBN: 978-1-80590-525-7(Print) / 978-1-80590-526-4(Online)

Editor: Lukášak Varti

Conference website: https://2025.icftba.org/Bratislava.html

Conference date: 12 December 2025

Series: Advances in Economics, Management and Political Sciences

Volume number: Vol.239

ISSN: 2754-1169(Print) / 2754-1177(Online)

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