Chinese AI and Chip Firms Skyrocket in Hong Kong Debut Amid Escalating Tech Race with US
Hong Kong's trading floor just got a massive shot of adrenaline—and it's all about silicon and algorithms.
The New Tech Power Play
Forget the quiet opening bell. A wave of Chinese artificial intelligence and semiconductor companies surged out of the gate on their Hong Kong debut. This isn't just a good day for investors; it's a direct signal in the high-stakes technological tug-of-war between East and West. The market's reaction was immediate and bullish, pouring capital into the very sectors at the heart of the strategic competition.
Decoding the Market Frenzy
The rally speaks volumes. It shows deep-pocketed confidence in China's homegrown tech ecosystem, even as external pressures mount. Investors are betting big that these firms can navigate supply chain complexities and innovation hurdles. They're funding the building blocks—the chips that power everything and the AI that defines the next era. Every percentage point gain is a vote for technological sovereignty.
The Global Chessboard
This surge lands as the US-China tech race hits a new intensity. It’s about more than market share; it’s about who sets the standards for the future. From advanced manufacturing to large language models, dominance in these fields translates to economic and geopolitical clout. Hong Kong's market, as a global financial hub, just became a key battleground for capital and confidence in this contest.
The Bottom Line
The message is clear: the race is accelerating, and the financial markets are picking sides. While analysts scramble to adjust their models, the underlying truth is that technology has become the primary arena for great-power competition. And as any good trader knows—sometimes cynically—nothing pumps a valuation like a mix of national pride and strategic necessity. The real test, of course, comes after the debut party ends and the hard work of delivery begins.
Several tech firms demonstrate heightened interest in Hong Kong
As this competition ignites tension in the market, reports have pointed out that xFusion, a major Chinese provider of computing infrastructure, has hired Citic Securities as the investment bank and “guidance institution,” or sponsor, to prepare for an initial public offering (IPO) process on the mainland.
Reports indicate that ChangXin Memory Technologies, China’s leading producer of Dynamic Random-Access Memory (DRAM) chips, and Kunlunxin, the AI chip design subsidiary of Chinese technology giant Baidu, were also thinking about going public.
Meanwhile, following its listing, Zhipu AI managed to collect approximately HK$4.35 billion for HK$116.20 per share. This outcome raised the company’s valuation to HK$51 billion. When reporters inquired about the firm’s intentions with the fund, Zhipu AI stated that it plans to allocate a significant portion of these funds to research and development.
After the firm made this assertion, Marco Sun, the chief financial market analyst at MUFG (China), stated that the minor gains in IPOs, particularly for Zhipu AI, should not be viewed as a decrease in interest for AI technology. “Investments made early on have not yet been turned into profits,” SUN said, adding that “The story of AI in China is just starting out, so it’s premature to make any judgments.”
Later, Janice Hu, the Head of UBS in China and Chairperson of UBS Securities, conducted an analysis and discovered that AI and high-tech firms listed in China have secured a valuation of approximately $5 trillion. That compares with roughly $30 trillion in the United States, pointing out that China lacks a significant player worth $1 trillion. Hu commented on the situation, alleging that it is just a matter of time before such a player emerges.
OpenAI describes Zhipu AI as an emerging competitor in the country
Zhipu AI, established in 2019, is currently recognized as a significant contributor to China’s AI efforts. This outlook was adopted after OpenAI described the company as an emerging competitor within Beijing’s push to foster AI developed in China globally in a June statement.
Dan Ouyang, a partner at the law firm Baker McKenzie, commented on the development, noting that the listing marks an important milestone for the company. He mentioned, “As a leader in the AI industry, this listing will give the company a lot of money to support its next stage of growth,” citing Zhipu AI’s recent move.
On the other hand, reports from reliable sources reveal that Shanghai Iluvatar CoreX collected about HK$3.48 billion.
Consequently, the company’s valuation ROSE to HK$36.8 billion mainly due to the price of its shares. Shanghai Iluvatar CoreX claimed that it will allocate a significant portion of these funds for research and development in chips, accelerators, and software.
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