China AI firms eye Hong Kong listings

The Express Tribune reported that listings of Chinese AI supply chain companies are expected to hold firm in Hong Kong despite rising valuation worries and tighter scrutiny. Citi's Simon Yuan, who also leads the bank's financial institutions group in Asia Pacific, said recent valuation pullbacks at data centre firms, largely American, had not altered that outlook. He added that future AI supply-chain listings would continue to come to Hong Kong.

Yuan said the planned Hong Kong offerings are supported by demand that is split roughly evenly between domestic Chinese and international investors. He pointed to a local pool of liquidity and rising southbound inflows from the mainland as a key source of buying. He also noted that many Chinese hardware makers have set up plants outside the mainland, which helps them serve overseas clients and soften the impact of geopolitical friction.

Yuan warned that a reversal in the US AI cycle would reach Hong Kong as well, pointing to volatility seen over the past few weeks. Chinese hardware suppliers have also gained from the global AI infrastructure boom, through higher sales volumes and higher unit prices. Looking ahead to next year, Yuan expects Hong Kong's equity capital markets to shift from pure hardware toward Chinese AI models and application developers.