The SIG Fund that Hit Byte is gradually shutting down its Chinese investment team but not withdrawing from China.

According to Data Beating monitoring, the U.S. quantitative trading giant SIG is gradually shutting down its China venture capital team. The head of the team and several employees are expected to resign. Gong Ting is preparing to start a new fund with a target fundraising of at least $100 million.

SIG is not completely exiting China. The company will retain a few employees to continue managing projects that have not been exited, most notably its stake worth at least tens of billions of dollars in ByteDance. SIG is also expanding its market-making business in China.

SIG entered the Chinese venture capital market in 2005 and has invested in over 350 companies. It became ByteDance's first institutional investor in 2012. Since 2023, SIG has only completed 9 investments in China.

The U.S. has restricted domestic funding from investing in certain AI, chip, and quantum technologies in China. It is becoming increasingly challenging to conduct Chinese tech venture capital, but SIG will continue to manage existing assets such as ByteDance.