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DeepSeek and other Chinese AI models spark investor interest in Hong Kong IPOs

15 IPOs were announced in the city in the first quarter of 2025, according to KPMG, 6 of which raised more than HK$1 billion – many of these were tech companies

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Chinese AIs like DeepSeek have caused many around the world to revise their opinion of the country’s progress in the field – and have spurred interest in tech-oriented IPOs in Hong Kong. Photo: Shutterstock
Gigi Wong

Hong Kong is experiencing a resurgence in IPO activity with global investor interest in artificial intelligence (AI) companies from mainland China a key component of the growth.

A particular catalyst behind this surge was the high-profile launch in January of DeepSeek, a Shenzhen-developed large language model that shifted global perceptions of China’s AI capabilities. This sparked a flurry of listings in Hong Kong with 15 IPOs announced in the first quarter of 2025, according to KPMG, including six that raised more than HK$1 billion (US$127 million) each. Most of these were in the technology sector.

“DeepSeek’s innovative approach to AI development marks a significant shift in the industry, challenging the conventional belief that ‘bigger is better’,” said Louis Lau, head of the Hong Kong Capital Markets Group at KPMG China. “Instead of relying solely on increasing model size and computational power, DeepSeek emphasises ‘architectural efficiency’, which involves designing models to work smarter and more effectively with available resources.”

The approach resonated with investors, particularly those watching to see how Chinese firms can achieve high levels of performance without access to the most advanced US-made chips.

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