From CNBC: 2025-04-02 23:01:00

Chinese companies are seizing the opportunity to go public in Hong Kong amidst global investor interest, following DeepSeek’s AI breakthrough. IPO candidates, investors, and regulators are working cooperatively, boosting confidence in China. Mixue and CATL are recent IPOs, signifying a positive trend for Hong Kong listings.

DeepSeek’s AI breakthrough, rivaling OpenAI’s ChatGPT, sparked a tech rally in China. President Xi Jinping’s support for tech entrepreneurs and Beijing’s pro-private sector stance signal a positive shift. Hong Kong saw a surge in IPOs, with KPMG reporting the best start to a year since 2021.

Despite the positive momentum, challenges remain. The fallout from Didi’s IPO prompted scrutiny on Chinese listings in the U.S., with ongoing U.S.-China tensions impacting capital flow. A potential meeting between the two leaders and AI interest may not be sufficient for China’s economic recovery. EY’s Chan warns of potential reversals, emphasizing the need for sustained positive trends.

Read more: DeepSeek AI excitement spills over to Hong Kong’s IPO market