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Chinese AI supply-chain IPOs expected to hold steady despite valuation pressures

Confirmed1 source · Oct 17, 2026

Hong Kong listings of Chinese AI hardware and infrastructure companies are cushioned by domestic liquidity and mixed demand sources, though vulnerability to US market volatility remains.

What happened

Simon Yuan, Citi's head of China investment banking, stated on October 17 at IMF meetings in Bangkok that Chinese AI supply-chain companies planning Hong Kong listings are expected to weather recent valuation pullbacks in data centre stocks. Yuan cited a roughly even split between domestic Chinese and international investor demand, plus rising southbound capital flows from mainland China, as supporting factors. He noted Chinese hardware suppliers have benefited from the global AI infrastructure boom through both volume growth and higher unit prices, and have proactively established manufacturing outside mainland China to mitigate geopolitical friction. Looking ahead, Yuan said the focus in Hong Kong's equity markets is expected to shift from pure hardware toward AI models and application developers, though these companies would need to demonstrate proven business models with strong growth and profitability.

Context

Hong Kong saw 118 tech IPOs raise HK$388 billion ($49.4 billion) in the first nine months of 2024, up 106% year-on-year, indicating substantial market appetite. The shift from hardware to AI software and applications reflects maturing market dynamics as infrastructure becomes commoditized. Yuan warned that a broader downturn in the US AI cycle could ripple globally to Hong Kong, indicating that while local liquidity provides a buffer, Chinese listings remain exposed to the international investment climate.