China tech IPOs rebound as Beijing backs chips and AI listings

Companies raised $3.1 billion on mainland listings through June 18, more than five times the amount in the same period a year earlier. Nearly 50 companies, from robotics startups to semiconductor makers, have applied to list in Shanghai and Shenzhen with planned fundraising of at least 126.1 billion yuan.

ChangXin Memory Technologies is planning a 29.5 billion yuan Shanghai IPO that could become the year’s largest. The pipeline is also reopening an exit route for private equity and venture capital firms that backed Chinese tech startups and were left waiting after the 2024 slowdown pushed more companies toward Hong Kong instead of domestic exchanges.

On June 17, officials announced support for listings by startups in future industries including quantum technology, nuclear fusion and brain-computer interfaces, while the Shanghai Stock Exchange published rules to make it easier for large-model companies to sell shares on the STAR Market. Separate STAR Market changes also support quantum technology, robotics, 6G, hydrogen energy and nuclear fusion, alongside AI developers such as Zhipu and MiniMax.

Data from S&P Global Market Intelligence show mainland IPO proceeds on the Shanghai and Shenzhen exchanges fell to $4.01 billion in January to June 2024 from $29.80 billion in the same period of 2023. Deloitte China data show the mainland raised about 68 billion yuan in 101 IPOs in 2024, a record low that was 68% below 2023.