China's AI boom ignites the capital market, with Hong Kong stocks' Q1 financing volume reaching a five-year high

Ask AI · How China’s AI investment logic is shifting from indirect to direct

Driven by the sustained heat in China’s artificial intelligence sector, the financing volume in Hong Kong’s stock market in the first quarter of 2026 hit a five-year high. Among major global exchanges, it ranks among the top. This has once again established Hong Kong’s position as the preferred destination for overseas listings of Chinese companies.

According to Dealogic and LSEG data, in the first quarter of 2026, Hong Kong’s IPOs and follow-on offerings combined raised about $14 billion, the best first-quarter performance since 2021, surpassing Nasdaq, the New York Stock Exchange, and the Bombay Stock Exchange. The two most eye-catching new listings this year—AI companies Zhipu and MiniMax—have both recorded cumulative gains of over 400% since listing, reflecting investors’ strong willingness to compete for exposure to China’s AI.

Jason Lui, head of equities and derivatives strategy for Asia-Pacific at BNP Paribas, said that when DeepSeek drew market attention in 2025, investors mainly gained AI exposure through large-cap technology stocks in indices. This year, however, pure-play AI labs and AI hardware listed offerings have already emerged, providing more precise tools for investors who want to make a direct bet on China’s artificial intelligence industry.

The rise of pure-play AI names; Hong Kong IPO financing leads globally

Tech hardware and software companies dominate this year’s Hong Kong IPO statistics, highlighting Hong Kong’s strategic value as a cross-border financing hub for Chinese companies—these companies urgently need funding to support overseas expansion and R&D investment. The strong performance of Zhipu and MiniMax signals a deepening evolution in the market’s AI investment logic: since Zhipu listed in Hong Kong in January this year, its stock price has already risen by more than 400%.

Jason Lui noted that, compared with 2025 when investors indirectly participated in the AI rally through large-cap technology indices, this year’s emergence of pure-play AI labs and AI hardware listing companies gives investors who want to express a clear bullish stance on China’s AI industry more targeted deployment tools.

At present, more than 400 companies are already in the application process through the Hong Kong IPO pipeline. Even agrochemical firm Sinochem? Shenyang? (先正达) is also considering listing in Hong Kong, indicating that overall market enthusiasm remains at a high level.

Mainland markets regain appeal; AI companies return to the STAR Market

Meanwhile, mainland capital markets are quietly re-entering the shortlist of listing destinations for some technology companies. According to reports citing two capital market consultants, some technology companies are considering switching their listing venue back to Shanghai or Shenzhen.

A fund manager at a Beijing venture capital firm stated that some of the firm’s portfolio companies—mainly in the fields of AI, quantum computing, and neural technologies—are evaluating the feasibility of listing on the Shanghai STAR Market. While listing in the mainland still faces relatively high regulatory thresholds, technology companies that hold strategic intellectual property rights can receive a green-channel route to accelerate approvals. This policy tilt is driving a renewed rebound in the STAR Market’s appeal to cutting-edge technology firms.