Citi Sees Resilient Hong Kong Demand for China AI Supply-Chain IPOs
Despite cooling global tech valuations and export pressures, Citi Research highlights strong international appetite for Chinese AI hardware listings.
Citi Sees Resilient Hong Kong Demand for China AI Supply-Chain IPOs
Despite cooling global tech valuations and export pressures, Citi Research highlights strong international appetite for Chinese AI hardware listings.
Resilient Demand for China AI Supply-Chain IPOs
According to Citi Research, demand for Chinese AI hardware listings in Hong Kong remains resilient even as tech valuations cool across the broader global market. Wall Street has spent much of 2026 debating whether the artificial intelligence sector is overbuilding, but Hong Kong's initial public offering market has continued to attract capital with strong interest from international investors.
Local liquidity and steady demand are also helping maintain stability for these listings, providing market support from multiple directions. AI-related listings drove a sharp rise in Hong Kong IPO fundraising during the first nine months of 2026, and Citi expects technology deals to push full-year proceeds to a record level for the year.
Navigating Sector Cool-Downs and Global Pressures
While some technology stocks have dropped 10% or more due to broader sector sell-offs or specific IPO reactions, Citi notes that core hardware names have avoided this fate. Demand for these essential supply-chain firms has stayed robust through market dips, distinguishing them from domestically oriented software and chip competitors.
At the same time, broader regional markets face significant headwinds. According to Bloomberg data cited in separate reports, Shanghai's Star 50 index dropped nearly 40% in 2026 amid domestic competition and capital outflows, with homegrown firms like MetaX, Moore Threads, SenseTime, and Kuaishou experiencing sharp pullbacks. In contrast, Chinese tech companies focusing heavily on overseas revenue exposure have demonstrated stronger performance, aligning with global data center supply chains.
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