CONNECT WITH US
AI & Deeptech

AI & Deeptech

China AI supply chain IPOs hold firm despite valuation pullback, Citi says

IndiaTimes (ET) - AI logo

Published on

Add as a preferred source on Google
China AI supply chain IPOs hold firm despite valuation pullback, Citi says

Business News Tech AI China AI supply chain IPOs hold firm despite valuation pullback, Citi says

China AI supply chain IPOs hold firm despite valuation pullback, Citi says

As anxiety over valuations rises, Chinese AI supply chain firms are set to remain resilient in the marketplace. Ongoing listings in Hong Kong are supported by high domestic and global demand, with capital influx from mainland China being vital. In the upcoming year, attention will pivot to AI model developers that exhibit robust profitability. Remarkably, there has been a notable surge in public offerings within equity capital markets this year.

Listings of Chinese AI supply chain companies are expected to stand their ground weathering rising valuation concerns and increasingly sharper scrutiny, a Citi banker working with Chinese companies said. 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 Simon Yuen, Citi's head of China investment banking. Chinese companies plan to list in Hong Kong are cushioned by a roughly even split between domestic Chinese and international demand, Yuen, who also heads Citi's financial institutions group in APAC, said ​on the sidelines of the IMF meetings in Bangkok.

The market is supported by a pool of local liquidity, with rising southbound capital from the Chinese mainland emerging as a key buying force, Yuen said. Still, "if the whole AI cycle turns in the US - and we have seen some volatility in the last few weeks - you will see an impact everywhere, Hong Kong included," he warned.


Source link
Related Topics:AI & Deeptech

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.