Chinese AI Supply Chain IPOs Remain Resilient, Citi Says
According to Citi, IPOs of Chinese AI supply chain companies in Hong Kong continue to remain strong despite valuation concerns and regulatory scrutiny.
IPOs of Chinese AI supply chain companies are expected to maintain their resilience in the Hong Kong market despite rising valuation concerns and tightening scrutiny. Speaking during IMF meetings in Bangkok, Simon Yuan, Citi's head of China investment banking, stated that future IPOs will continue despite US-driven data center valuation pullbacks.
Planned IPOs by Chinese companies in Hong Kong are supported by an approximately equal distribution between domestic Chinese demand and international demand. Simon Yuan, who is also Citi's head of Asia-Pacific financial institutions group, stated that the market is supported by a local liquidity pool and that southbound capital from mainland China constitutes a key purchasing power. Yuan also warned that if the US AI cycle turns, it would affect everywhere, including Hong Kong.