Global Market: China's 'future industries' investment boom sparks valuation bubble concerns

China's investment frenzy in future industries such as aerospace, robotics, biomanufacturing and hydrogen energy is raising bubble concerns as startup valuations surge. Venture capital and private equity investments in China reached 620 billion yuan in the first five months of 2026, up nearly 60% year-on-year, with newly registered VC funds totalling 154 billion yuan already exceeding the full-year 2025 total. Five China-focused dollar funds raised a combined 4 billion dollars as of June 12, surpassing prior annual totals, though rapid valuation increases in photonic chips and satellite technology are prompting worry about whether future public listings will justify current prices.