China’s technology IPO market is on course for its strongest year since 2023 as Beijing steps up support for chipmakers and artificial intelligence companies.
Technology firms have raised about $3.1 billion through stock market listings in mainland China this year to June 18, more than five times the amount raised during the same period last year, according to LSEG data.
IMG TXT: China’s Tech IPO Market Rebounds. Source: Reuters
Nearly 50 companies, including semiconductor makers and robotics firms, have applied to list on the Shanghai and Shenzhen stock exchanges. Together, they plan to raise at least 126.1 billion yuan ($18.7 billion). Among the biggest applicants is memory chip maker ChangXin Memory Technologies (CXMT), which plans to raise 29.5 billion yuan through a Shanghai IPO. If completed, it would be China’s largest listing this year.
Beijing opens the door for more technology companies
The rise in IPO activity follows new measures announced by Chinese regulators on June 17 to support listings by companies working in quantum technology, nuclear fusion, brain-computer technology and artificial intelligence.
The Shanghai Stock Exchange has also introduced new rules to make it easier for companies developing large language models to raise money on its STAR Market.
The renewed activity comes after a weak period for mainland listings. Chinese technology companies raised just $2.7 billion in 2024, down sharply from $15.7 billion in 2023. Many companies instead turned to Hong Kong to raise capital.
Will more local funding support blockchain projects?
China’s recent push is mainly aimed at strengthening its own technology industry as competition with the United States continues. More local funding could help companies build advanced chips, AI systems and other technologies without relying as heavily on overseas investors.
While cryptocurrencies remain restricted in mainland China, the country continues to support blockchain and stablecoins development in areas such as supply chains, finance and digital identity. Many blockchain companies also depend on advances in chips, cloud computing and AI to improve their services.
If more technology companies succeed in raising money through mainland stock markets, it could also benefit businesses building blockchain infrastructure, data centres and AI tools that support digital asset services outside China’s retail crypto market.
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