(Bloomberg) -- Qiming Venture Partners raised $3.2 billion across two funds in the latest signal of a potential resurgence in Chinese venture capital investment.

The firm closed its oversubscribed USD Fund VIII at $2.5 billion and also raised roughly $700 million in a yuan-denominated fund, both aimed at supporting startups in technology, consumer and health-care sectors. Qiming manages $9.4 billion across 18 funds after the fundraising, it said in a statement on Monday.

Venture funding in China plummeted at the start of this year as the government’s far-reaching crackdown on tech hit valuations across public and private markets. VC and private equity funds raised only $6.2 billion in the first five months of 2022, a 90% drop from the previous year, and startup investments slowed 40% to $34 billion, according to data from research firm Preqin.

China Tech Investor Defies Skeptics With $900 Million Fundraise

Recent weeks have shown signs of improving sentiment, as Sequoia China has secured about $9 billion for investments in tech and consumer firms and IDG Capital is poised to raise about $900 million for a new China-focused fund backed mostly by existing investors. Early-stage investor BlueRun Ventures China has also reached the final close of its second dual-currency fund at over 5.5 billion yuan ($817 million) in May, according to a company statement.

Sequoia China Raises $9 Billion as Investors Flock to Big Funds

Founded in 2006, Qiming has backed over 480 companies including Xiaomi Corp. and Meituan. So far, the company has made over 180 exits, it said in the statement.

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