How Chinese Chipmakers Are Igniting a New IPO Supercycle

Beijing’s chip ambitions, retail speculation, and policy fast‑tracking are reshaping the IPO landscape in mainland China and Hong Kong.

China’s AI chipmakers are making headlines with blockbuster IPOs that combine geopolitical urgency, speculative fervor, and structural quirks unique to its domestic market. Two recent debuts, MetaX and Moore Threads, illustrate the scale and speed of this transformation.

MetaX, founded by a former AMD executive, surged nearly 700% on its Shanghai debut. Moore Threads, led by a former Nvidia executive, jumped 400% just days earlier. Together, they raised $1.7 billion. Retail demand was overwhelming: both IPOs were oversubscribed around 4,000 times.

Valuation Risks: Hype or Hope?

While Western markets wrestle with AI valuation fatigue, Chinese investors are piling into domestic chipmakers. MetaX trades at roughly 50 times sales, Moore Threads at 123 — both are still loss‑making. For comparison, Nvidia sits at 34. Analysts warn that such peaks may be short‑lived, but Beijing’s industrial policy continues to drive investor optimism. According to KPMG, fundraising via IPOs in mainland China is up 23% year‑on‑year, driven by the AI boom. In Hong Kong, the numbers are even more impressive: IPOs have raised more than triple the amount last year.

Debut Dynamics: The Spectacle of the “Pop”

China’s IPO structure can amplify speculative dynamics. Retail investors access new listings via a lottery system, creating scarcity and hype. Regulators cap IPO prices, often triggering dramatic first‑day surges. After years of tightened IPO controls, strategic sectors such as AI now receive accelerated listing approvals, sometimes within months.

This structure often fuels speculative interest and can result in sharp volatility.

With property markets still in crisis mode and overseas investing restricted, retail traders have few alternatives for high‑yield bets. Patriotic investing may also play a role, as many seek to back domestic tech champions.

A massive IPO pop may signal mispricing rather than strength. In mature markets, modest gains are seen as healthier. In China, the debut spike is part of the spectacle, but post‑listing sell‑offs are common. Retail investors often enter at peak valuations, exposing them to volatility while startups remain far from profitability.

Policy Drivers: Chips and Geopolitics

The IPO boom is unfolding amid shifting global tech tensions. The US recently allowed Nvidia and AMD to sell some high-end AI chips to approved Chinese buyers, including Nvidia’s H200 — but continues to bar exports of its most advanced Blackwell chips.

It remains unclear whether China will greenlight H200 purchases or prioritize domestic chip production. Even limited access could benefit Chinese AI model developers such as DeepSeek, Alibaba (Qwen), and Moonshot (Kimi) — while domestic chipmakers race to close the gap.

More chip IPOs are already in the pipeline: Biren has received approval for a $300 million Hong Kong listing, and Baidu’s Kunlunxin is preparing its debut. And China is now fast‑tracking listings to cement its ambitions to become a global force to be reckoned with in chipmaking.

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