China’s valuation-driven stock rally on AI optimism to stretch fundraising frenzy in 2026
Tech companies on Shanghai, Shenzhen exchanges now trade nearly 40 per cent above the Nasdaq 100, boosting the appeal of going public
More AI players will capitalise on the rich valuations of mainland China’s technology boards to raise funds to drive research and expansion, as China and the US compete for dominance in the world’s cutting-edge technologies.
After a solid run in 2025, tech companies on the Shanghai and Shenzhen exchanges now trade at nearly 40 per cent premiums to those on the Nasdaq 100, boosting the appeal of going public on the home markets.
“I would say capital markets so far are still supportive, whether it’s the global market or the Taiwan market,” said Randy Abrams, UBS Group’s head of Taiwan research, in an interview on Wednesday in Shanghai. “You see the valuations for AI technology, whether it’s chips or whether it’s doing manufacturing and packaging tests.”
Some 30 to 40 Chinese chipmakers and other companies across the semiconductor supply chain were on track for initial public offerings (IPOs) on mainland exchanges this year, with three or four being key industry players, said Jimmy Yu, an analyst tracking the semiconductor sector at the Swiss Bank.