Core Viewpoint - The article highlights a surge in AI companies seeking to list on the Hong Kong Stock Exchange (HKEX), driven by new regulations that allow unprofitable tech firms to go public, particularly in the generative AI sector [1][7]. Group 1: Listing Trends - A significant number of AI companies, including Yunzhisheng, Woan Robotics, and Qunhe Technology, are currently in the process of listing on HKEX, with over 20 firms reported to be in the pipeline [1][3]. - As of 2023, 20 AI-related companies have gone public in Hong Kong, achieving a total market capitalization exceeding 2833 million HKD [3][4]. - The IPO fundraising in Hong Kong has seen a dramatic increase of 711% year-on-year in the first half of 2023, with many new listings coming from the tech sector [1][8]. Group 2: Market Performance - The newly listed AI companies have shown strong market performance, with half of the 20 stocks listed in 2023 experiencing price increases, and some, like Horizon Robotics, seeing gains of over 90% [4][9]. - The overall market environment has improved, with a decrease in the new stock failure rate from 57% to 32.1% compared to the previous year, indicating a more favorable climate for IPOs [9]. Group 3: Financial Challenges - Despite the listing boom, approximately 75% of AI companies listed on HKEX are currently operating at a loss, with many facing increasing financial pressures [1][11]. - For instance, Horizon Robotics reported a loss of 21.44 billion RMB in 2024, contributing to a cumulative loss exceeding 76 billion RMB over four years [11][12]. - High R&D expenditures are a significant factor in these losses, with companies like Hezhima Intelligent seeing their R&D costs rise dramatically, impacting their financial stability [12][13].