Chinese tech stocks have embarked on a remarkable journey in 2026, propelled by an AI-fueled rally that shows no signs of losing steam. Notably, shares of Shanghai Biren Technology, an AI chip designer, soared nearly 120% on the Hong Kong Stock Exchange by midday Friday following a successful initial public offering (IPO) that raised 5.58 billion Hong Kong dollars, equivalent to $717 million. The stock opened at 35.70 Hong Kong dollars, significantly exceeding its IPO price of 19.60 Hong Kong dollars. Retail interest in the offering was unprecedented, with the subscription rate surpassing 2,300 times, highlighting the fervent demand for China’s homegrown AI hardware sector.
This recent surge is part of a broader trend as Chinese AI and semiconductor stocks have gained momentum since the introduction of the domestically developed DeepSeek-R1 AI model in January 2025. This breakthrough has contributed to a significant 23% increase in the Hang Seng Tech Index throughout 2025. On Friday, the index experienced further gains, rising as much as 3.9%.
The changing landscape in the market has been further fueled by the tightening of U.S. export controls on advanced Nvidia chips, leading to a heightened demand for domestic alternatives. Andrei Zakharov, an analyst from Smartkarma, observed that Nvidia’s once-dominant presence in China’s AI chip sector has virtually disappeared within the past year—a fundamental shift in the global intelligent computing arena.
Shanghai Biren’s impressive market debut not only signals a resurgence in the AI sector but also indicates a turnaround for the broader Chinese tech landscape, which has faced challenges due to regulatory scrutiny and economic headwinds. Following the success of the DeepSeek-R1, numerous startups such as Cambricon, Moore Threads, and Metax have attracted billions in funding as they race to provide chips necessary for data centers, large language models, and various industrial AI applications.
The influx of capital into the AI chip sector has translated into extraordinary wealth creation, with billionaires emerging at an astonishing pace, even as the overall economy grapples with extended property sector challenges.
Looking ahead, Shanghai Biren’s spectacular entry into the market is anticipated to be just the beginning, with Hong Kong establishing itself as a crucial venue for future fundraising efforts. In a related development, Baidu, a prominent player in the Chinese tech industry, has announced that its AI chip subsidiary has confidentially filed for a listing in Hong Kong.
Recent trends indicate that at least 25 companies held market debuts in Hong Kong last month, making it the most active month for IPOs since November 2019. Nearly half of those listings were in the technology sector. The momentum is expected to continue this month, with additional AI-related tech companies such as MiniMax Group and Knowledge Atlas Technology, also known as Zhipu AI, preparing for their debuts next week.
