Hong Kong (AFP) – Shares in China’s Zhongji InnoLight fell in the first few minutes of its Hong Kong debut Thursday, after raising at least US$6.8 billion in the city’s biggest IPO since 2019. The firm, which makes high-end optical components for AI data centres, dropped more than 8.5 percent to HK$895 at around 10:17 am (0217 GMT).
The Shenzhen-listed firm priced shares at HK$980, raising about HK$53.4 billion (US$6.8 billion) in Hong Kong’s biggest public offering since Chinese tech behemoth Alibaba listed in 2019. Zhongji InnoLight is one of several Chinese firms blacklisted by the US Department of Defense in June over alleged military ties.
The company rejected the US claims in its filing to the Hong Kong stock exchange, saying “we have not engaged in any military-related businesses or activities.” It warned investors that the blacklist “may subject us to increased scrutiny and potential further government actions.”
China and the United States are locked in a race for dominance in the fast-moving AI field, fuelling huge global expansion of data centres—warehouse-like facilities crammed with computer servers. Thursday’s listing is the latest in a recent run of blockbuster debuts from Chinese AI-related companies in Hong Kong, indicating optimism for China’s ambitions in the sector.
© 2024 AFP
