Private equity, spooked by Ant Group IPO suspension, eyes Chinese 'hard tech' sector in paradigm shift | South China Morning Post

Investment funds are flowing away from consumer-internet companies and towards "hard-tech" in China as venture capitalists, funds and investors adjust their strategies to reflect the nation's evolving focus on social stability and national security. Some funds are also expanding their investments beyond China to hedge against derating risks among domestic companies, as persistent regulatory concerns and increasing geopolitical risk - arising from widening differences between Beijing and Washington - dampen optimism about China stocks. "We have seen a paradigm shift in China's private-equity industry from the consumer internet to the 'hard-tech' sector," said Sean Xiang, founder and chief executive of…