China’s IPO Market Resurges as AI Firms Rush to List in 2025
Artificial intelligence has emerged as the defining force in China’s capital markets in 2025, driving a significant resurgence in initial public offerings and fundamentally altering valuations. One in every four newly listed Chinese companies this year is AI-related, marking a structural shift where the technology has transitioned from a theoretical concept to a mandatory component for commercial growth.
The momentum was underscored on Dec. 17, when MetaX surged 692.95% on its A-share listing debut. Following the earlier listing of Moore Threads in early December, these two domestic GPU manufacturers secured the top two spots by market capitalization among all new A-share listings this year. Their performance has injected liquidity and confidence into the technology sector, setting a high note for the market as the year concludes.
This influx of AI-focused listings has revitalized the broader market, with the total volume of new offerings up significantly from the previous year. The number of listed companies involving AI business lines has more than doubled, as investors increasingly treat AI integration as a standard prerequisite for scalability rather than a speculative addition.
While the number of listings has rebounded, the market landscape is being shaped by distinct regulatory preferences. Hong Kong has consolidated its position as the primary hub for AI applications and software due to supportive policy reforms, while the mainland A-share market remains strictly focused on profitable "hard technology" infrastructure.
Surge in Market Activity
The sheer volume of activity in 2025 indicates a robust recovery in China's equity markets. As of Dec. 17, a total of 215 companies have listed across the A-share and Hong Kong markets, a 26% increase compared to the previous year. Within this expanding pool, the growth of AI-related firms has outpaced the broader market.
The number of companies with AI operations among new listings surged 143% year-on-year to 51 firms. Consequently, the "AI penetration rate"—the proportion of new listings featuring AI business lines—climbed from 12% last year to 24%. The concentration is even higher in Hong Kong, where 34% of new listings, or one in three companies, are AI-related.
Hong Kong as the Testing Ground
Hong Kong has attracted 75% of the new AI-related listings this year, driven largely by the exchange's Chapter 18C listing regime. The rules, which lowered market capitalization thresholds for commercialized specialized technology companies to HK$4 billion, have provided a pathway for unprofitable tech firms to access capital.
Under these policies, 2025 has seen the emergence of "AI First" stocks, including Yunji Technology, Deepexi Technology, and WeRide. Additionally, 51WORLD, aiming to be the "Physical AI First Stock," is scheduled to list on Dec. 30.
However, the Hong Kong Stock Exchange (HKEX) remains a rigorous testing ground. The listing approval rate dropped to 22.38% this year, down from 42.8% in 2024, signaling that despite lower entry barriers, scrutiny on asset quality has intensified. The market’s intolerance for weak execution was visible in the performance of ZG Group. Despite pitching an "AI + Steel" narrative, its stock has plummeted approximately 80% from its issue price since its March listing, as investors questioned its profitability and actual AI capabilities.
Divergent Regulatory Standards
A clear dichotomy in listing preferences has established itself between mainland and offshore markets. While Hong Kong accepts business model innovation and applications, the A-share market favors "hard tech" infrastructure, particularly in semiconductors and computing power.
Unless a company is critical to national strategic needs—specifically regarding GPU, computing power, or chip infrastructure—A-share regulators continue to prioritize core profitability. The A-share class of 2025, including companies like CSG Digital, IC-Key Internet and Technology, and Insta360, typically follows an "Industry + AI" model with proven revenue streams, contrasting with the more experimental profiles often seen in Hong Kong.
Deepening Industry Penetration
Beyond pure-play technology firms, 2025 has been defined by the permeation of AI into vertical industries. Smart hardware, automotive mobility, and cross-border e-commerce have seen the highest rates of AI adoption among new issuers.
In the hardware sector, Insta360 highlighted AI algorithms as a core competency in its prospectus, while Scantech emphasized AI-driven 3D scanning. In the mobility sector, autonomous driving firms such as Pony.ai and ride-hailing platforms like Cao Cao Mobility have centered their growth narratives on AI scheduling and operational efficiency. Even traditional industrial giants are pivoting; Sany Heavy Industry is developing unmanned excavators, and CATL is utilizing AI to screen battery materials, signaling that AI has moved deep into the operational arteries of the real economy.
From Concept to Commercialization
The overarching theme of 2025 is the transition from "AI concepts" to tangible products and infrastructure. The market has moved past the "trial period" of 2024 into a "deep water" phase where commercial viability is paramount.
This shift is visible in three distinct categories of new listings. First, the infrastructure layer has solidified with the listings of domestic GPU leaders like MetaX and Moore Threads. Second, vertical large language models (LLMs) are being deployed for specific industrial use, such as CSG Digital’s "Da Wa Te" model for power grid inspection and Mininglamp Technology’s marketing models. Third, embodied AI is gaining traction, exemplified by autonomous robots from Geek+ entering logistics workflows.
While a true "AI Native" foundation model company has yet to list in China, the mass commercialization observed in 2025 suggests the sector is building the necessary track record for further capital market expansion in 2026.