Key Takeaways:
China's onshore technology IPO market is staging its strongest comeback since 2023 as Beijing prioritizes listings for chip and artificial intelligence companies in a push for tech self-reliance.
Chinese technology companies have raised $3.1 billion from onshore stock market listings this year through June 18, more than five times the volume in the same period of 2025, as regulators accelerate approvals for chip and AI firms.
"The acceleration of technology IPOs has provided long-awaited exit opportunities for private equity and venture capital funds that have backed these companies," said Li He, co-head of law firm Davis Polk's Asia (ex-Japan) practice.
Nearly 50 companies, including robotics startups and semiconductor firms, have applied for initial public offerings in Shanghai and Shenzhen, with fundraising plans totaling at least 126.1 billion yuan ($18.7 billion), according to Reuters calculations based on filings. Memory-chip maker ChangXin Memory Technologies is planning a 29.5 billion yuan Shanghai IPO that would be the largest this year. The rebound follows a prolonged drought: annual proceeds from tech company listings in China fell to $2.7 billion in 2024 from $15.7 billion in 2023, before recovering to $3.6 billion in 2025, LSEG data show.
The pickup marks a reversal of a listing hiatus that had persisted since 2024, when some domestic companies rushed to Hong Kong to raise offshore capital. Chinese tech companies raised $6.6 billion in Hong Kong in 2025, nearly double the onshore total. Now, with Beijing's backing, the onshore pipeline is swelling — and early investors are being rewarded.
Regulators Open the Door for 'Future Industries'
The China Securities Regulatory Commission said on June 17 it would support listings of startups in "future industries" including quantum technology, nuclear fusion and brain-computer interfaces. The Shanghai Stock Exchange has also published rules to facilitate public share sales by large-language-model companies on the STAR Market, part of a broader effort to promote homegrown AI companies.
Zhipu AI, which raised HK$4.35 billion ($555.2 million) in a Hong Kong IPO in January, is aiming to raise 15 billion yuan from a STAR Market listing, it said earlier this month. Baidu's chip unit Kunlunxin, which is awaiting regulatory approval for a $2 billion Hong Kong listing, is planning a smaller domestic float, according to a person with knowledge of the matter.
Investor Demand Surges as New Listings Soar
Strong investor demand has fueled the revival. Shares of SJ Semiconductor Corp have surged more than eightfold from their IPO price, while Semight Instruments has jumped nearly 28-fold. Chongqing Genori Technology, a maker of vacuum chamber components used in semiconductor manufacturing, saw its shares soar almost 1,200 percent from its IPO price within days of its Shanghai debut, minting Chairman Wang Bing a $4.7 billion fortune, according to Forbes estimates.
"The pickup in Chinese tech issuance is part of a broader global AI wave, with China and the U.S. the two markets that set the tone," said James Wang, head of Asia ex-Japan equity capital markets at Goldman Sachs.
Ho-Yin Lee, Asia-Pacific co-head of technology and communications at Citigroup, said a mainland listing could help Hong Kong-traded companies reach a broader market and domestic investors. "They would get access to a deep pool of capital, funding to grow businesses and great domestic branding," Lee said.
The CSRC, in its address to a high-level financial forum in Shanghai earlier this month, said it would back qualified Hong Kong-listed companies seeking mainland listings. Kenny Ng, a strategist at China Everbright Securities International, said the support could broaden access to mainland markets and improve liquidity.
This article is for informational purposes only and does not constitute investment advice.
