Listed Chinese companies have raised more than US$1 billion globally through placements so far this year, with most of it in February
THE stars are aligned for Chinese technology companies to boost stock financing, capitalising on a DeepSeek-driven US$1 trillion rally and Beijing’s perceived softer stance on the once-battered sector.
This week, robot maker UBTech Robotics, chipmaker Black Sesame International Holding and AI drug-discovery company XtalPi Holdings said they were raising as much as a HK$4.2 billion (S$723 million) from share placements for things like research and development to business expansion. AI firm Beijing Fourth Paradigm Technology earlier this month also raised about US$180 million in a placement.
The offerings come as the investment climate in the Chinese tech sector has turned notably friendlier, after artificial intelligence startup DeepSeek fuelled a stock-buying frenzy in firms related to the cutting-edge technology. Further brightening investor mood was President Xi Jinping’s meeting this week with prominent entrepreneurs including Alibaba Group Holding co-founder Jack Ma, a move that signalled Beijing’s endorsement for a long-marginalised private sector.
“In the past few years, capital markets weren’t too positive,” said Steve Chow, an analyst at ABCI Securities “In the past they might not have had the chance to raise money, and now the window’s opened.”
UBTech and XtalPi shares have gained more than 70 per cent and 30 per cent, respectively, this year, while those of Black Sesame have slipped about 9 per cent. The Hang Seng Tech Index is up 23 per cent for the year.
The funding environment for Chinese companies has been volatile in recent years, especially following Beijing’s crackdown on the country’s tech juggernauts that began with Ant Group’s cancelled initial public offering. Tensions with the US, including a growing list of Chinese firms sanctioned by Washington, have worsened the conditions.
The situation has started improving this year.
Listed Chinese companies have raised more than US$1 billion globally through placements so far this year, with most of it in February, according to data compiled by Bloomberg. BLOOMBERG
Share with us your feedback on BT’s products and services
