China's AI and chip IPO surge targets tech self-reliance

China's domestic technology IPO market is experiencing its strongest performance since 2023, driven by semiconductor manufacturers and artificial intelligence companies as Beijing accelerates efforts toward technological independence.

Technology firms raised $3.1 billion through mainland stock listings from January through mid-June 2026, representing more than a fivefold increase compared to the same period in 2025, according to data from LSEG. Nearly 50 companies—spanning robotics startups to semiconductor manufacturers—have filed for initial public offerings in Shanghai and Shenzhen, with combined fundraising targets of at least 126.1 billion yuan ($18.7 billion), Reuters reported.

Record-breaking listings on the horizon

Memory chip maker ChangXin Memory Technologies (CXMT) is preparing a 29.5 billion yuan ($4.4 billion) Shanghai IPO that would mark the largest offering of 2026 and push total listing values to a three-year high. Another major player, Yangtze Memory Technologies, is also among the companies pursuing substantial public offerings.

The momentum follows a June 17 announcement from Chinese regulators pledging support for startups in "future industries" including quantum technology, nuclear fusion, and brain-computer interfaces. The Shanghai Stock Exchange has introduced new rules specifically designed to facilitate listings by large-language-model companies on its STAR Market.

Why it matters

This IPO surge reflects China's strategic response to escalating technology competition with the United States and provides critical exit opportunities for private equity and venture capital funds that have backed these companies for years. The regulatory support for dual listings—allowing Hong Kong-traded firms to also list on mainland exchanges—creates a pathway for companies to access deeper pools of domestic capital while maintaining international presence. For global technology markets, China's ability to fund its semiconductor and AI sectors through domestic capital markets reduces dependence on foreign investment and accelerates the bifurcation of technology ecosystems.

Reversing the offshore exodus

The current wave marks a sharp reversal from 2024, when many Chinese technology companies rushed to list in Hong Kong to secure offshore capital. Annual proceeds from mainland technology IPOs had plummeted to $2.7 billion in 2024 from $15.7 billion in 2023, before recovering to $3.6 billion in 2025.

The China Securities Regulatory Commission (CSRC) announced earlier in June that it would support qualified Hong Kong-listed companies seeking mainland listings. Zhipu AI, which raised HK$4.35 billion ($555 million) in a Hong Kong IPO in January, is now targeting 15 billion yuan from a STAR Market listing. Baidu's chip unit Kunlunxin, currently awaiting approval for a $2 billion Hong Kong listing, is planning a smaller domestic offering, according to a source familiar with the matter.

Strong investor appetite

Recent mainland tech IPOs have generated exceptional investor demand. SJ Semiconductor Corp has surged more than eightfold from its IPO price, while Semight Instruments shares have jumped nearly 28-fold.

"The acceleration of technology IPOs has provided long-awaited exit opportunities for private equity and venture capital funds that have backed these companies," Li He, co-head of law firm Davis Polk's Asia (ex-Japan) practice, told Reuters.

James Wang, head of Asia ex-Japan equity capital markets at Goldman Sachs, characterized the trend as part of a broader global AI wave, with China and the United States as the two markets setting the tone.

These details were first reported by Kane Wu and Yantoultra Ngui for Reuters.