Japanese Media: Chinese High-Tech Firms Return Home for Financing, Pursuing Self-Reliance and Strength

According to a July 27 report by Japan's Kyodo News Agency: Chinese high-tech companies that once favored listing on the world's largest market—the United States—are now concentrating on listing in Shanghai and Hong Kong stock markets, gradually returning home.

With the U.S. designating China as its "primary strategic competitor" and tightening regulatory policies, Chinese enterprises are actively raising capital and accelerating technological advancement.

On the 27th, China’s largest semiconductor memory company, "CXMT (Longxin Memory Technologies)," held Asia’s largest initial public offering (IPO) of the year. As China’s biggest DRAM memory semiconductor manufacturer, CXMT holds the fourth-largest global market share. On the STAR Market of the Shanghai Stock Exchange, the company's stock surged as high as 5.7 times its IPO price. The company rapidly emerged as the most valuable domestic firm by market capitalization, with plans to raise up to 66.6 billion RMB (approximately 1.6 trillion JPY).

According to Deloitte, a major accounting firm, from January to June this year, Chinese companies completed 70 IPOs across three mainland markets—Shanghai, Shenzhen, and Beijing—a 40% increase compared to the same period last year. Meanwhile, Hong Kong saw 78 IPOs, a 90% year-on-year rise. Behind this trend lies China’s national strategy of "self-reliance and strength" in high-tech fields. By leveraging sovereign funds to support growing firms and relaxing listing standards on exchanges, China is fostering a more favorable environment for innovation-driven enterprises.

The rise of China’s emerging AI enterprise Deepseek, whose high-performance AI development has stunned the world, is also driving the IPO trend. Reports indicate that Deepseek plans to list in Shanghai as early as 2027. Moonshot Space, meanwhile, is aggressively entering the U.S. AI market with its latest AI model “Kimi K3,” and is reportedly aiming to go public in Hong Kong within the next six months.

At the same time, IPOs by Chinese companies on major U.S. markets are declining. According to a survey by the U.S. Congress, there were over 40 such listings in 2021, but only one in the first half of this year.

Recently, the U.S. has labeled fast-growing firms like CXMT as "military-related companies," claiming it will "further strengthen surveillance of military ties" (via the SEC), signaling no signs of easing in Sino-U.S. tensions.

Original Source: toutiao.com/article/1871879776053257/

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