Chinese AI and Semiconductor Firms Surge in Hong Kong Debuts as Tech Race with US Heats Up (2024)

• Why Are Investors Betting Big on China’s Tech IPOs?
• How Is Beijing Fueling the Tech Gold Rush?
• What Does OpenAI’s Warning Reveal?
• FAQs: Decoding China’s Tech Stock Frenzy

Three Chinese tech giants—Zhipu AI, Shanghai Iluvatar CoreX, and Shenzhen Edge Medical—saw explosive debuts on the Hong Kong stock exchange, collectively raising HK$9.3 billion (US$1.19 billion). Analysts view this as a vote of confidence in China’s homegrown AI and semiconductor sectors amid escalating US-China tech tensions. The rally has prompted Beijing to fast-track IPOs for strategic tech firms, signaling a push for self-reliance. Meanwhile, OpenAI flagged Zhipu AI as a rising competitor, underscoring China’s ambitions to rival Silicon Valley’s dominance.

Why Are Investors Betting Big on China’s Tech IPOs?

In a blockbuster trading day, Zhipu AI—China’s first major language model specialist to go public—opened 3.3% above its IPO price of HK$116.20 and closed up 13.2% at HK$131.50. Not to be outdone, GPU designer Shanghai Iluvatar CoreX surged 31.6% at open (from HK$144.60) before settling at an 8.4% gain (HK$156.80). The showstopper? Surgical robot maker Shenzhen Edge Medical, which rocketed 36.4% at launch and locked in a 30.9% closing spike (HK$56.60). "These aren’t just wins—they’re fireworks," quipped a BTCC market analyst. "Investors are chasing China’s answer to Nvidia and OpenAI."

How Is Beijing Fueling the Tech Gold Rush?

Post-IPO, authorities announced accelerated listing approvals for AI and chip firms—a clear countermove to US export controls. Zhipu AI’s HK$4.35 billion raise (valuing it at HK$51 billion) will fund R&D for "next-gen AI comparable to GPT-4," per company filings. Iluvatar, now worth HK$36.8 billion, pledged similar investments. "The US has 30x China’s AI market cap today, but that gap will narrow," UBS China’s Janice Hu told TradingView. Case in point: memory chipmaker ChangXin and Baidu’s AI unit Kunlunxin are now eyeing Hong Kong listings.

What Does OpenAI’s Warning Reveal?

OpenAI’s June report spotlighted Zhipu AI as a "strategic emerging competitor"—a badge of honor for the 2019-founded startup. "This IPO isn’t just about capital; it’s a legitimacy milestone," noted Baker McKenzie’s Dan Ouyang. With xFusion (China’s server giant) also prepping an IPO, the message is clear: China’s tech dragons are ready to breathe fire. As one hedge fund manager put it, "They’re building moats with yuan instead of dollars now."

FAQs: Decoding China’s Tech Stock Frenzy

Which Chinese AI firms had the strongest IPO pops?

Shenzhen Edge Medical led with a 36.4% opening surge, followed by Iluvatar CoreX (31.6%) and Zhipu AI (3.3%). All three closed significantly higher than their IPO prices.

How much did these IPOs raise collectively?

The trio secured HK$9.3 billion (US$1.19 billion), with Zhipu AI contributing nearly half at HK$4.35 billion.

Why is Hong Kong attracting Chinese tech listings?

Its neutral regulatory environment and global investor access make it a safer bet than US exchanges amid geopolitical tensions.