🇨🇳 Fusion Startup Draws Fresh State Capital

China’s controlled fusion sector received another capital injection as listed firms Hangyang Co. and Turbine Technology said they will invest in Shanghai Xinghuan Energy, a Shanghai-based fusion startup spun out of Tsinghua University. Each will invest RMB50 million for 0.66% stakes, while other investors will contribute a combined RMB720 million for 9.45%.

The deal marks a follow-on investment by Hangzhou state capital into fusion. Existing shareholder Hangzhou Guoyou Asset Operation is wholly owned by Hangzhou Capital, the indirect controlling shareholder of both listed firms, making the transaction related-party in nature; all are ultimately controlled by the Hangzhou SASAC. Xinghuan Energy, founded in 2021 by Tsinghua alumni Chen Rui and Tan Yi, uses a compact spherical tokamak design based on high-temperature superconducting strong magnetic fields and repetitive pulsed operation with magnetic reconnection plasma heating.

The company said in May it had completed a RMB500 million Series A+ round, bringing cumulative funding above RMB2 billion, with valuation above $1 billion. The latest round extends the flow of Chinese industrial and state-linked capital into commercial fusion.

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