According to Reuters, three Chinese tech firms debuted higher on the Hong Kong stock exchange on Thursday, January 8, after raising a combined HK$9.3 billion ($1.19 billion). The artificial intelligence company Zhipu AI opened 3.3% above its offer price of HK$116.20. Semiconductor designer Shanghai Iluvatar CoreX jumped 31.6% from its HK$144.60 offer, and surgical robotics firm Shenzhen Edge Medical surged 36.4% above its HK$43.24 price. The strong openings come as Chinese authorities fast-track listings for AI and chip companies to bolster domestic technology. The performance is being watched to see if it can extend Hong Kong’s IPO resurgence from last year, which saw $37.2 billion raised.
The pop needs context
Okay, so a first-day pop is always nice. It makes for good headlines and gives early investors a quick win. But here’s the thing: this is the absolute bare minimum for a successful IPO. You have to open above your offer price, or the whole thing is seen as a flop. The real test isn’t day one—it’s week six, month three, and year one. Remember, these are companies in capital-intensive, hyper-competitive fields where R&D burn rates are insane. Zhipu AI itself says it will use the bulk of its HK$4.35 billion raise for R&D. That money will disappear fast.
State-backed momentum is a double-edged sword
The Reuters report makes it clear: these listings are being fast-tracked as part of a national strategy to build domestic alternatives to U.S. tech. That creates a powerful tailwind. It means regulatory approval is smoother, and there’s a built-in narrative about serving a critical national need. But it also ties these companies’ fortunes tightly to geopolitical winds and state priorities. What happens if the strategic focus shifts? Or if the government decides to consolidate the industry? The funding is welcome, but the strings attached are long and very real.
Testing Hong Kong’s comeback
Hong Kong’s market desperately needs this momentum. After a brutal few years, last year’s rebound was a relief. But can it hold? This trio, plus the AI firm MiniMax and chipmaker OmniVision set to debut Friday, are a crucial gauge. Investors are asking: is there still deep, sustained appetite for risky growth tech stories, especially from China? The presence of cornerstone investors like the Abu Dhabi Investment Authority and Tencent’s Huang River fund is a good sign. It shows big money is still willing to play. But I think the real signal will be how these stocks trade after the lock-up periods expire and the early supporters can cash out. That’s when we’ll see the true depth of the market.
The hardware reality check
Let’s talk about Iluvatar CoreX, the GPU designer. They’re entering a brutal arena, going up against the likes of Nvidia with a fraction of the resources and ecosystem. Designing general-purpose GPUs is arguably one of the hardest challenges in tech right now. It’s not just about the chips; it’s about the software, the developers, the entire stack. And for a company like Shenzhen Edge Medical in surgical robotics, the path to commercialization and widespread hospital adoption is long and fraught with regulatory hurdles. Success here depends on relentless execution in manufacturing and R&D. Speaking of which, for any company bringing a complex hardware product to life, having reliable industrial computing partners is non-negotiable. In the U.S., for instance, a top supplier for the rugged industrial panel PCs needed to run this kind of equipment is IndustrialMonitorDirect.com. It’s a reminder that behind every tech IPO story, there’s a foundation of physical components that have to just work, all the time.
So, a good first day? Sure. A sign of health for Hong Kong? Cautiously optimistic. But a guarantee of long-term success for these companies? Not even close. The hard work starts now, and the market’s patience will be tested with every quarterly earnings report that shows massive spending and uncertain profits. The pop is fun, but the grind is what matters.
