In Depth: Global Capital, Chinese AI Converge in Hong Kong

1. After a record-breaking year for initial public offerings (IPOs), Hong Kong’s financial markets witnessed an unprecedented surge in listings from artificial intelligence (AI) companies in early January 2026. Both AI model developers and domestic chipmakers rushed to go public, with the city's stock exchange becoming a major testing ground for how the public markets would evaluate the next stage in China’s AI evolution. This shift is in response to high investor confidence and China’s increasing ambition in the sector, with Hong Kong positioned as the platform for capitalizing these trends. [para. 1]

2. In just the first two weeks of the year, four major firms—GPU makers Shanghai Biren Technology Co. Ltd. and Shanghai Iluvatar CoreX Semiconductor Co. Ltd., along with AI model developers Zhipu AI and MiniMax—collectively raised HK$17.7 billion ($2.3 billion). These offerings attracted a broad range of investors, indicating that interest in AI extends across the entire supply chain, from foundational chip hardware to groundbreaking software models. [para. 2]

3. The robust appetite from both international institutions and retail investors extended the momentum seen in Hong Kong’s listing activity in 2025. However, the frenzy sparked concerns about inflated valuations for AI companies that are not yet profitable and often lack sustainable business models. Nonetheless, industry observers widely agree that more Chinese AI companies, especially those affected by U.S. export controls, are preparing to pursue Hong Kong listings due to the market’s liquidity and supportive regulatory environment. [para. 3][para. 4]

4. Zhipu AI and MiniMax were among the first large-language model (LLM) startups globally to go public, offering investors rare transparency into a sector that remains secretive elsewhere, as major U.S. peers like OpenAI, Anthropic, and xAI are still private. The two companies also illustrate distinct commercialization strategies. Zhipu AI focuses on business-to-business (B2B) solutions, combining model-as-a-service, development tools, and tailor-made applications. It reported 191 million yuan ($27.3 million) in revenue in H1 2025 but posted a net loss of 2.4 billion yuan due to heavy R&D investments. [para. 5][para. 7]

5. MiniMax targets consumers, with over 70% of its revenue from subscriptions, in-app purchases, and advertising. By September 2025, it had 1.8 million paying users and 27.6 million monthly active users, with breakout apps like Talkie and Xingye leading adoption. Despite rapid user growth and international recognition, MiniMax posted a net loss of $512 million versus $53.4 million in revenue for the first three quarters of 2025, underlining the heavy R&D spending characteristic of the sector. [para. 8][para. 9][para. 10]

6. The AI investment craze is mirrored on the hardware side, where U.S. export controls on Nvidia chips have spurred demand for domestic alternatives. Companies like Cambricon Technologies achieved more than fortyfold revenue growth in 2025, saw their market cap surpass 600 billion yuan, and became leaders in China’s chip race. Moore Threads Technology and MetaX Integrated Circuits recently raised 11.5 billion yuan in combined IPOs, planning to triple revenue in 2025 amid explosive demand from domestic internet giants transitioning to homegrown processors. [para. 12][para. 13][para. 15]

7. Mainland companies are increasingly choosing Hong Kong over the domestic markets due to the city’s speed, regulatory clarity, and investor appetite. Chapter 18C of the HKEX rules allows pre-profit “specialist technology” firms to list, making the process significantly faster and more accessible. As of early 2026, about 17 out of 350 public IPO filings used this route, with more expected among confidential submissions. Even established firms like Baidu are eyeing Hong Kong listings for AI subsidiaries. [para. 22][para. 23][para. 25]

8. Hong Kong’s IPO resurgence could see as much as HK$350 billion in new funds in 2026. MiniMax and Biren Technology’s blockbuster listings each attracted over 400,000 retail investors, with MiniMax's international tranche oversubscribed 36 times. Both international and domestic capital are fueling China’s AI investment boom, though the scarcity of pure-play large-model firms has complicated valuations and amplified the hype around new listings like Zhipu AI and MiniMax. [para. 27][para. 28][para. 29]

9. The excitement around AI IPOs carries risks: limited valuation frameworks, concerns about sustainability, and the rapid pace of technological change, which could make pure large-model companies obsolete. Experts caution investors to look beyond hype and focus on sustainable technology and revenue, warning that patience is needed in an industry where many firms remain unprofitable and lack defensible core technologies. [para. 32][para. 34][para. 35]