Global Market: China’s IPO boom gains momentum as AI, robotics fuel investor appetite

Chinese stock markets are witnessing a surge in new public offerings, driven by strong investor interest in artificial intelligence, robotics and other advanced technologies, while more companies are choosing to list in Hong Kong and Shanghai, according to the Associated Press (AP).

The latest major listing is expected to come from China-founded e-commerce and fast-fashion company Shein, whose shares are scheduled to debut in Hong Kong on Tuesday. The initial public offering is expected to raise about $1.7 billion, making it one of Hong Kong’s largest listings this year.

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The IPO activity follows several blockbuster technology listings on mainland Chinese exchanges. In July, CXMT, China’s largest memory chipmaker, raised more than $8.6 billion in Shanghai, making it the second-largest IPO in China’s Nasdaq-style STAR Market and the second-largest IPO on the mainland this year. Its shares surged about 466% on the first day of trading.

The momentum continued in August when humanoid robot maker Unitree debuted in Shanghai. The company’s shares jumped around 460% on their first trading day, highlighting the intense enthusiasm surrounding China’s artificial intelligence and robotics sectors.

According to AP, analysts see investor appetite for AI and robotics as a major force behind the current IPO boom. Shanghai’s stock market is also heavily influenced by retail investors, whose enthusiasm for technology themes has helped drive sharp gains in newly listed companies.

China’s Push for Technology Self-Sufficiency

CXMT’s blockbuster listing also underlined China’s ambitions to strengthen its domestic technology and semiconductor manufacturing capabilities. The company, founded in China in 2016, has benefited from a sharp increase in demand for memory chips used in AI-related applications.

Its revenue jumped more than 700% year-on-year to 50.8 billion yuan, or about $7.5 billion, in the first three months of 2026, according to the information cited by AP.

The strong performance of technology companies has helped make AI-related businesses a key attraction for investors, particularly as China seeks greater self-sufficiency in strategically important industries.

Hong Kong and Shanghai Gain Ground

The strength of China’s IPO market is also reflected in fundraising figures. Data from LSEG, cited by AP, shows that IPOs and secondary listings in Hong Kong and Shanghai have raised more than $54 billion so far in 2026. That has already surpassed the more than $46 billion raised across the two markets during all of last year.

Together, Hong Kong and Shanghai have accounted for roughly 21% of global IPO proceeds this year, ranking behind the Nasdaq, which has captured around 55% of global proceeds.

The US market has been boosted by the massive $75 billion SpaceX IPO in June, which made the Nasdaq the world's biggest IPO market this year.

Chinese Firms Prefer Domestic and Hong Kong Listings

China's restrictions on foreign investment in mainland stock exchanges mean many Chinese companies use Hong Kong as a route to access international investors. At the same time, increased regulatory scrutiny in both the US and China has made American listings less attractive for some companies, particularly those operating in strategically sensitive technology industries.

AP cited capital-markets lawyers as saying that overseas listings can also take longer to complete than IPOs in China.

Hong Kong has nevertheless attracted several large technology-related listings this year. Recent offerings from Luxshare Precision Industry, an Apple supplier, and Zhongji Innolight, which manufactures optical transceivers used in data centres, have ranked among the year's larger deals.

Other robotics companies, including AGIBOT and Deep Robotics, are also considering listings in Hong Kong or Shanghai.

AI Rally Raises Valuation Concerns

Despite the strong debut performances, the IPO boom has also raised concerns over valuations and whether investor enthusiasm can be sustained.

Some newly listed companies have already seen their share prices retreat sharply after their initial surges. Unitree, for instance, had fallen more than 40% from its debut-day peak as of Friday.

The decline highlights a broader question facing investors: whether excitement around AI and robotics can translate into sustainable revenues and profits rather than simply driving short-term speculative gains.

The concerns mirror debates in the US, where investors have also questioned whether the enormous capital flowing into AI-related companies is supported by sufficiently strong earnings and long-term business prospects.

Shein Enters a More Selective Market

Shein's Hong Kong listing comes against this backdrop of intense demand for technology stocks. The company has reportedly explored listings in the US and London before settling on Hong Kong.

The IPO is expected to value Shein at around $27 billion, significantly below the company's peak valuation several years ago. The lower valuation partly reflects regulatory changes in the US and Europe, including efforts to restrict tax exemptions for low-value imports.

The contrast between Shein's offering and the explosive debuts of Chinese AI and robotics companies illustrates how investor preferences have shifted. The global AI investment cycle is attracting a significant share of the market's risk appetite, potentially leaving less enthusiasm for consumer-focused businesses such as Shein.

China's IPO market is therefore entering a period of rapid expansion, but the durability of the boom may ultimately depend on whether the excitement surrounding AI and advanced technology can translate into sustainable earnings, rather than short-lived post-listing rallies.