8 months ago
China Eases IPO Rules for AI Chip Startups
China is making it easier for AI chip startups to go public.
This is because China wants to be more self-reliant in technology, especially in making chips.
Two startups, Moore Threads and MetaX, are the first to use these new rules.
Moore Threads had a huge success when it went public, with its shares going up by 425%.
However, both companies are still not making a profit.
The Chinese government hopes that by making it easier for these companies to get money, they can catch up to foreign chip makers.
Investors are also interested because they believe in China’s long-term tech goals.
China has eased IPO rules to help local AI chip startups raise funds.
Moore Threads, a Chinese AI chip maker, saw its shares surge 425% in its debut IPO.
The new rules allow unprofitable startups in strategic industries to list on Shanghai’s STAR Market.
Both Moore Threads and MetaX have recorded steep losses due to heavy investment in R&D.
China aims to boost tech self-reliance, but profitability and closing the gap with foreign chip makers remain uncertain.
- Who
- Chinese AI chip startups like Moore Threads and MetaX
- What
- China is easing IPO rules to help local chip makers raise funds
- Where
- On Shanghai’s STAR Market
- When
- The reform has recently started to bear fruit, with Moore Threads listing last week
- Why
- To boost China’s tech self-reliance and close the gap with foreign chip makers
Key facts
- Moore Threads IPO Surge
- 425%
- Moore Threads Market Value
- $55 billion
- U.S. Computational Power Share
- 75%
- China Computational Power Share
- 15%
- Moore Threads IPO Approval Time
- 88 days
- Minimum Market Cap for IPO
- $566.7 million
- Moore Threads Founder
- Zhang Jianzhong
- MetaX Founder
- Ex-AMD employees
Quotes
Terence Ho
EY Greater China IPO leader
“The rapid approval is a perfect example of the ‘unconventional measures’ mentioned in the [five-year] plan to overcome bottlenecks in core technologies.”
livemint.com
“Capital markets serve as a critical lifeline for China’s tech startups.”
livemint.com
Angela Cheng
Chief macro strategist at CGS International, owned by Chinese sovereign fund China Investment Corp
“Whether a company is profitable or not is not the most important factor we consider when we invest.”
livemint.com
