{"id":4115,"date":"2026-10-17T09:13:48","date_gmt":"2026-10-17T09:13:48","guid":{"rendered":"https:\/\/blog.cedritech.com\/?p=4115"},"modified":"2026-10-17T09:13:48","modified_gmt":"2026-10-17T09:13:48","slug":"china-ai-supply-chain-ipos-hold-firm-despite-valuation-pullback-citi-says","status":"publish","type":"post","link":"https:\/\/blog.cedritech.com\/?p=4115","title":{"rendered":"China AI supply-chain IPOs hold firm despite valuation pullback, Citi says"},"content":{"rendered":"<div class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__full_width__kCIGb body-module__small_body__gOmDf article-body-module__paragraph__Ts-yF\" data-testid=\"paragraph-0\">Bangkok, Oct 17 (Reuters) &#8211; Listings of Chinese AI supply chain companies are expected to stand their ground \u200bweathering rising valuation concerns and increasingly sharper scrutiny, a Citi (C.N) banker \u200cworking with Chinese companies said.<\/div>\n<div class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__default__R2Ckt article-list-module__container__-2sdX\" data-testid=\"ArticleList\">\n<ul class=\"article-list-module__unordered__aLEL9 article-list-module__disc__XcBxE article-body-module__paragraph__Ts-yF article-body-module__list__G8QPC\" role=\"list\" data-testid=\"unordered-0\">\n<li>\n<div class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__inherit-size__EyiQW body-module__full_width__kCIGb body-module__small_body__gOmDf\" data-testid=\"Body\">Despite recent valuation pullbacks on data centre companies, largely originating from the US market, future AI supply-chain listings would continue in Hong Kong, said \u200bSimon Yuan, Citi&#8217;s head of China investment banking.<\/div>\n<\/li>\n<li>\n<div class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__inherit-size__EyiQW body-module__full_width__kCIGb body-module__small_body__gOmDf\" data-testid=\"Body\">Chinese companies plan to \u200blist in Hong Kong are cushioned by a roughly even \u2060split between domestic Chinese and international demand, Yuan, who also heads Citi\u2019s \u200bfinancial institutions group in APAC, said on the sidelines of the IMF \u200bmeetings in Bangkok.<\/div>\n<\/li>\n<li>\n<div class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__inherit-size__EyiQW body-module__full_width__kCIGb body-module__small_body__gOmDf\" data-testid=\"Body\">The market is supported by a pool of local liquidity, with rising southbound capital from the Chinese mainland emerging as a key buying force, Yuan said.<\/div>\n<\/li>\n<li>\n<div class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__inherit-size__EyiQW body-module__full_width__kCIGb body-module__small_body__gOmDf\" data-testid=\"Body\">Still, &#8220;if the \u200bwhole AI cycle turns in the US \u2014 and we have seen \u200bsome volatility in the last few weeks \u2014 you will see an impact everywhere, Hong Kong \u200cincluded,\u201d \u2060he warned.<\/div>\n<\/li>\n<li>\n<div class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__inherit-size__EyiQW body-module__full_width__kCIGb body-module__small_body__gOmDf\" data-testid=\"Body\">Many Chinese hardware players have proactively established manufacturing footprints outside mainland China, he said, which helps them better service global clients and mitigate geopolitical friction.<\/div>\n<\/li>\n<li>\n<div class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__inherit-size__EyiQW body-module__full_width__kCIGb body-module__small_body__gOmDf\" data-testid=\"Body\">Chinese hardware suppliers have benefited from the global AI infrastructure boom, \u200bgaining both sales volume \u200bgrowth and \u2060higher unit prices, Yuan said.<\/div>\n<\/li>\n<li>\n<div class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__inherit-size__EyiQW body-module__full_width__kCIGb body-module__small_body__gOmDf\" data-testid=\"Body\">Next year, the focus in Hong Kong&#8217;s equity capital markets is expected to shift away \u200bfrom pure hardware, toward Chinese artificial intelligence models and \u200bapplication developers, \u2060he said.<\/div>\n<\/li>\n<li>\n<div class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__inherit-size__EyiQW body-module__full_width__kCIGb body-module__small_body__gOmDf\" data-testid=\"Body\">&#8220;But these companies need to have a proven business model. They need to show very strong growth and profitability,&#8221; he said.<\/div>\n<\/li>\n<li>\n<div class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__inherit-size__EyiQW body-module__full_width__kCIGb body-module__small_body__gOmDf\" data-testid=\"Body\">Propelled by Chinese tech \u2060funding \u200bdemand, 118 firms went public in Hong Kong \u200bin the first nine months of the year, raising HK$388 billion ($49.4 billion), up 106% year-on-year. ($1 = \u200b7.8479 Hong Kong dollars)<\/div>\n<\/li>\n<\/ul>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Bangkok, Oct 17 (Reuters) &#8211; Listings of Chinese AI supply chain companies are expected to stand their ground<\/p>\n","protected":false},"author":8,"featured_media":4116,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[56,5],"tags":[],"class_list":["post-4115","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-china","category-technology"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=\/wp\/v2\/posts\/4115","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4115"}],"version-history":[{"count":1,"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=\/wp\/v2\/posts\/4115\/revisions"}],"predecessor-version":[{"id":4117,"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=\/wp\/v2\/posts\/4115\/revisions\/4117"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=\/wp\/v2\/media\/4116"}],"wp:attachment":[{"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4115"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4115"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4115"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}