Chinese tech companies, led by Zhipu AI, climb in Hong Kong debut

Core Insights - Three Chinese technology firms debuted successfully in Hong Kong, raising a total of HK$9.3 billion ($1.19 billion), indicating a positive outlook for new listings in the region [1][5] - All debuting companies traded above their offer prices, with Zhipu AI opening 3.3% higher, Shanghai Iluvatar CoreX rising 31.6%, and Shenzhen Edge Medical increasing by 36.4% [1][2] Company Summaries - Zhipu AI, an artificial intelligence company, raised HK$4.35 billion at an offer price of HK$116.20, achieving a valuation of approximately HK$51 billion. The majority of the proceeds will be allocated for research and development [3][4] - Shanghai Iluvatar CoreX, a semiconductor firm specializing in general-purpose GPUs, raised HK$3.48 billion with an offer price of HK$144.60, resulting in a market capitalization of around HK$36.8 billion. The funds will primarily support R&D in chips, accelerators, and software [4] - Shenzhen Edge Medical, a surgical robotics company, raised about HK$1.12 billion, which will be used for R&D, commercialization, manufacturing capacity, and strategic acquisitions. Key investors include Abu Dhabi Investment Authority and Tencent [5] Market Context - The recent debuts are part of a broader initiative by Chinese authorities to accelerate AI and chip listings, aiming to bolster domestic alternatives to advanced U.S. technology [2] - The performance of these companies will be crucial in determining if Hong Kong can maintain the momentum from last year's IPO resurgence, which saw $37.2 billion raised from 115 new listings, the highest since 2021 [5][6] Upcoming Listings - The IPO pipeline is expanding, with MiniMax Group and OmniVision Integrated Circuits set to begin trading soon, indicating continued interest in the tech sector [6]