AI and semiconductor companies drive resumption of IPOs in China
IPOs (initial public offerings) of technology companies in China are on track to record their best year since 2023, as Beijing seeks to boost listings of semiconductor and artificial intelligence companies in an effort to achieve technological self-sufficiency amid the country's rivalry with the United States.
According to data from LSEG, technology companies raised a total of US$3.1 billion in IPOs in China this year through June 18, more than five times the volume recorded in the same period last year.
Nearly 50 companies, including robotics startups and semiconductor companies, have filed for IPOs in Shanghai and Shenzhen, with fundraising plans totaling at least $18.7 billion, according to Reuters calculations based on filings.
One of the companies aspiring to go public, memory chip maker CXMT (ChangXin Memory Technologies), plans to launch a 29.5 billion yuan IPO in Shanghai, which would be the biggest this year and bring the total value of IPOs to the highest level in three years, according to LSEG data.
The increase in momentum for domestic listings comes after China's regulators announced on June 17 that they would support the IPO of startups in "sectors of the future" such as quantum technology, nuclear fusion and brain-computer interfaces.
The Shanghai Stock Exchange has also published rules to facilitate the public sale of shares of major language model companies on the STAR Market, as part of its efforts to promote domestic AI companies.
"The acceleration of IPOs of technology companies has provided long-awaited exit opportunities for private equity and venture capital funds that have backed these companies," said Li He, co-head of legal at Davis Polk in Asia (excluding Japan).
The wave of IPOs in the technology sector comes amid a technology war between China and the US and marks the reversal of a hiatus in listings that has persisted since 2024, when some domestic companies rushed to go public in Hong Kong to raise funds abroad.
Annual proceeds from technology companies going public in China fell to $2.7 billion in 2024 from $15.7 billion in 2023, before recovering to $3.6 billion in 2025, according to LSEG data, compared with the $6.6 billion raised by Chinese technology companies in Hong Kong in 2025.
"Ample capital reserve"
The CSRC (China Securities Regulatory Commission), in a speech delivered at a high-level financial forum in Shanghai earlier this month, said it would support qualified companies listed in Hong Kong seeking to obtain a listing in mainland China.
Kenny Ng, China strategist at Everbright Securities International, said CSRC support could expand access to mainland Chinese markets and improve liquidity.
"If companies from other regions listed in Hong Kong can be included in the future, it could provide investors with more diversified options and bring greater liquidity to the market," said Ng.
Zhipu AI, which raised US$555.2 million in an initial public offering in Hong Kong in January, for example, aims to raise 15 billion yuan with a listing on the STAR market, it announced earlier this month.
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Baidu's chip unit Kunlunxin, which is awaiting regulatory approval for a $2 billion IPO in Hong Kong, is planning a smaller initial public offering in the domestic market, said a person with knowledge of the matter, who asked not to be identified because he was not authorized to speak to the press.
Baidu and Kunlunxin did not respond to emailed requests for comment.
Ho-Yin Lee, co-head of technology and communications for the Asia-Pacific region at Citigroup, said a listing in mainland China could help Hong Kong-listed companies reach a market. the broadest and domestic investors.
"They would have access to vast capital, financing to expand their business and great brand visibility domestically," said Lee.
Hopes of a recovery in the domestic IPO market have also been fueled by strong investor demand for recent IPOs of mainland Chinese technology companies.
Shares of SJ Semiconductor Corp have soared more than eight times their IPO price. Semight Instruments shares have soared nearly 28 times their IPO price.
"The surge in Chinese technology stock issuance is part of a broader global wave of AI, with China and the U.S. being the two markets setting the pace," said James Wang, head of Asia (excluding Japan) equity capital markets at Goldman Sachs.
Source: CNN