Chinese tech firms flock to Hong Kong for IPOs amid DeepSeek-triggered AI boom

A slew of Chinese companies are eyeing initial public offerings (IPOs) in Hong Kong, riding on the stock market impetus provided by artificial intelligence (AI) start-up DeepSeek.

AICT, a Beijing-based AI solutions provider, aims to raise about US$200 million from a Hong Kong IPO, according to sources familiar with the matter. AICT, whose products are used in robots, intelligent traffic systems and autonomous driving, was expected to file a listing application in the second quarter, one of the sources said.

Citic Securities and CCB International were the sponsors for the deal, said the people who requested anonymity for discussing a private matter. AICT, which counts smartphone and electric vehicle (EV) maker Xiaomi and venture capital firm Gaorong Capital as strategic investors, would seek a Shanghai listing after Hong Kong, one of the people added.

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More Chinese tech firms could tap Hong Kong's IPO market amid a shift in the market's perception of AI development in China and a supportive regulatory environment, according to industry experts.

Chinese tech firm AICT aims to raise around US$200 million via a Hong Kong IPO, sources say. Photo: Handout alt=Chinese tech firm AICT aims to raise around US$200 million via a Hong Kong IPO, sources say. Photo: Handout>

"With improved sentiment towards tech and AI, mid and large-cap firms in semiconductors, AI and robotics are increasingly exploring IPOs in Hong Kong," said John Lee Chen-kwok, vice-chairman and co-head of Asia coverage at UBS in Hong Kong.

Hangzhou-based DeepSeek's large language models (LLMs) have been rapidly adopted after they became the subject of national pride following their launch last month. DeepSeek-V3 and DeepSeek-R1 offer similar performance to leading proprietary traditional and reasoning LLMs but were trained at a fraction of the cost.

Since DeepSeek's breakthrough, investors have refocused on Chinese names with relatively cheaper valuations than their US peers, Lee said. "Investors are much more engaged in tech names and may bet on the next DeepSeek and the next disrupters."

Goldman Sachs and Morgan Stanley, meanwhile, have lifted their targets for key Chinese stock indices this year, saying faster adoption of AI could spur economic growth and corporate earnings.

"If market sentiment continues to improve alongside the broader stock market and AI re-rating, we can expect more companies to consider listings in Hong Kong," Lee said.