China's AI boom ignites capital markets, Hong Kong stocks see Q1 financing hit five-year high

Driven by the continued surge in China’s artificial intelligence sector, the Hong Kong stock market reached a five-year high in financing in the first quarter of 2026, ranking among the top major global exchanges and reestablishing its position as the preferred destination for Chinese companies to list overseas.

According to Dealogic and LSEG data, the combined fundraising from new listings and additional issuances on the Hong Kong stock market in the first quarter of 2026 totaled about $14 billion, marking the best first quarter performance since 2021 and surpassing the Nasdaq, New York, and Mumbai exchanges. The two most outstanding new stocks this year—AI companies Zhipu and MiniMax—have both seen cumulative gains of over 400% since listing, reflecting investors' strong desire to tap into China’s AI exposure.

Jason Lui, Head of Equity and Derivative Strategy for Asia-Pacific at BNP Paribas, commented that when DeepSeek attracted market attention in 2025, investors mainly gained AI exposure through the large-cap tech stocks in the index; however, this year has seen the emergence of pure AI labs and AI hardware IPOs, providing investors who wish to bet directly on China’s artificial intelligence sector with more accurate tools.

The rise of pure AI targets, Hong Kong equity financing leads globally

Technology hardware and software companies dominate this year’s Hong Kong IPO statistics, highlighting Hong Kong’s strategic value as an overseas financing hub for Chinese enterprises—these companies urgently need funding to support overseas expansion and R&D investment. The stellar performance of Zhipu and MiniMax signifies a deepening evolution in the market's logic for investing in Chinese AI: Since Zhipu went public in Hong Kong in January this year, its stock price has risen by over 400%.

Jason Lui pointed out that compared to 2025, when investors participated in the AI boom indirectly through large-cap tech indices, this year’s emergence of pure AI labs and AI hardware listed companies has provided more precise tools for those wanting to take a clear bullish stance on China’s artificial intelligence sector.

Currently, more than 400 companies are in the IPO pipeline in Hong Kong, with agrochemical giant Syngenta also considering listing there, showing that the overall market enthusiasm remains elevated.

Renewed appeal for the mainland market, STAR Market welcomes return of AI companies

Meanwhile, the mainland capital markets are quietly being re-added to the shortlist for some tech companies’ listing plans. According to media reports citing two capital market advisers, some technology firms are considering switching their listing destinations back to Shanghai or Shenzhen.

The investment manager from a Beijing VC organization said that several of its portfolio companies—mainly involved in AI, quantum computing, and neural technology—are evaluating the feasibility of listing on Shanghai’s STAR Market. Although listing on the mainland still faces high regulatory hurdles, tech companies with strategic intellectual property may enjoy a fast-track approval process, and this policy tilt is drawing frontier tech companies back to the STAR Market.

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