Cash-Hungry China AI Companies Turn to Hong Kong Listings

Chinese artificial intelligence (AI) and semiconductor companies are increasingly choosing to list in Hong Kong as they seek new capital to support heavy research and development costs, navigate tightening U.S. technology restrictions, and address intensifying market competition that continues to pressure their financial stability. This shift is largely motivated by the need to maintain aggressive innovation while facing significant geopolitical constraints and competition from both domestic and international players. [para. 1]

Shanghai Biren Technology Co. Ltd., a prominent GPU maker, has recently announced the details of its Hong Kong IPO. The company plans to offer around 248 million shares at a price range of HK$17 to HK$19.6 per share, aiming to raise up to HK$48.5 billion (US$6.23 billion), with trading expected to commence on January 2. Biren recently received regulatory approval, both from the Hong Kong exchange and China’s securities watchdog. [para. 2][para. 3]

The IPO has attracted significant interest from 23 cornerstone investors, including several major funds and insurers, who have collectively committed to subscribing for as much as HK$28.99 billion in shares. This early commitment represents approximately 45% to 69% of the offering, depending on the final allocation and over-allotment. [para. 4]

Most of the IPO proceeds will be directed toward research and development, especially for next-generation general-purpose GPUs and software platforms. The remainder is allocated for commercialization, working capital, and general corporate use. [para. 5]

Founded in 2019 and recognized as one of China’s "Four Little Dragons" of GPUs, Biren is actively developing new products targeted at data-center training, inference, and edge computing. The firm currently sells three AI chips launched between 2023 and 2025 and expects to commercialize its BR20X chip in 2026, with additional launches planned through 2028. [para. 6]

Despite rapid revenue growth—rising from merely 500,000 yuan in 2022 to 337 million yuan in 2024, and further to 589 million yuan in the first half of 2025—the company remains unprofitable. Research expenses have exceeded six times the total revenue in the past three years, fueling deep and widening losses. [para. 7]

Biren, like other Chinese tech firms, faces constraints from U.S. export controls. The U.S. Commerce Department added Biren to its Entity List in October 2023, restricting its access to advanced chips and U.S.-origin technology. [para. 8]

The Hong Kong listings come amid a surge in investor interest in China’s AI chip sector. Recent IPOs of domestic GPU firms on Shanghai’s STAR Market saw their share prices increase substantially, suggesting that Hong Kong listings may similarly boost valuations. [para. 9]

Major AI startups are also shifting to Hong Kong. Zhipu AI, one of China’s top large-model developers, reported 191 million yuan in revenue in 1H 2025, though net losses reached 2.36 billion yuan due to steep research and computing expenditures. The company, incubated at Tsinghua University, has invested heavily in building its GLM models, with research expenses nearly doubling year on year. Its revenue mainly comes from enterprise customers, particularly local deployment solutions, which comprise 85% of sales. Zhipu turned to Hong Kong listing after hitting roadblocks with A-share IPOs. [para. 10][para. 11][para. 12][para. 13]

MiniMax, another major AI startup, cleared its Hong Kong listing hearing and posted $53.4 million in revenue for the first nine months of 2025, but with a net loss of $512 million. MiniMax's main revenue streams are subscription-based AI apps and advertising, while enterprise services accounted for nearly 29% of revenue. The company has raised about $1.56 billion pre-IPO and was valued at $4.24 billion in August 2025. A notable legal risk includes a U.S. copyright lawsuit that could potentially expose it to $75 million in damages. [para. 14][para. 15][para. 16][para. 17]

On the hardware side, GPU designer Tianshu Zhixin, recently valued at about 12 billion yuan, has passed its Hong Kong listing hearing, with revenues up 64% year on year but still posting a net loss of 609 million yuan in the first half of 2025 due to heavy R&D. The company faces risks tied to supply-chain disruptions and U.S. export controls impacting manufacturing and design tools. [para. 18][para. 19][para. 20]

Analysts say this wave of Hong Kong listings reflects both the urgency of needing fresh capital and the opportunities arising from restrictions on Nvidia and other Western chipmakers, allowing domestic firms to gain market share. However, investors should note the sector’s continued lack of profitability and ongoing exposure to geopolitical and legal uncertainties. [para. 21][para. 22]