Also on AF: China’s Top Streaming Site Under Fire Over AI Actor ‘Database’ Beijing has been locked in a technology war with the West. Boosting its semiconductor capacity is part of its bid to cut down foreign technology dependence, while also rivalling the United States’ prowess in AI. Shares in Guangdong-based Victory Giant Technology Huizhou rocketed 59.6% in early trade to HK$335 ($43), having set its price at HK$209.88 and raising HK$17.3 billion ($2.2 billion).

Victory Giant, whose shares are already listed across the border in Shenzhen, makes high-end printed circuit boards (PCBs), a crucial component of AI servers. One of its key customers is Nvidia, now the world’s most valuable company, thanks to feverish global demand for AI chips. The initial public offering (IPO) is the biggest since Zijin Gold International raised US$3.7 billion in September.

It is also 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. IPOs benefitting from Beijing priorities Nvidia’s most cutting-edge AI chips cannot be sold in China under US export rules that Washington says are aimed at protecting national security. So, Beijing is accelerating efforts to develop its own advanced semiconductors and break away from reliance on US hardware.

“China continues to prioritise AI infrastructure, advanced manufacturing, and semiconductor-adjacent supply chains as strategic sectors,” Dilin Wu, research strategist at Pepperstone, told AFP. So “companies like Victory Giant benefit from both policy support and financing accessibility”, she said. While there is “sustained demand” for high-end PCBs owing to booming investment into AI servers and data centres worldwide, high prices may not last, Wu cautioned.

“The current cycle is still characterised by tight supply in high-end PCB manufacturing,” she said. “Whether this persists will depend on how quickly global and domestic capacity catches up with AI-driven demand growth.” This year has already seen strong Hong Kong IPOs by leading Chinese AI startups Zhipu AI and MiniMax, as well as graphics processing unit maker Shanghai Biren Technology and chip firm OmniVision Integrated Circuit Group. AFP, with additional editing by Vishakha Saxena Also read: ByteDance’s Viral Video Model Signals China’s Increasing Grip on AI Delayed New DeepSeek Model Set to Test China’s AI Chip Mettle Nexperia’s China Unit ‘Nears Fully Local Production’ of Chips China Beats US Again in Global Patent Race, Huawei Keeps its Lead China Now Requires Chipmakers to Use At Least 50% Local Equipment Nvidia CEO Says US Export Curbs on AI Chips is ‘Flawed’ Policy China’s Big Tech Secret: Lab Copied Dutch Chipmaking Machine Chinese AI Firms, Chipmakers Form Alliance To Ditch Foreign Tech China’s ‘Tech Economy’ Outshining Its Cloudy Growth Outlook Beijing And Its AI Billions TSMC’s Net Profit Jumps Over 58% to Set Fresh Record on AI Demand Samsung Electronics Expects Profit to Jump 755% on AI Boom