Chinese AI firms dominate Hong Kong IPOs with $22 billion in exits, while US tech listings lag amid investor skepticism.
China’s artificial intelligence companies are driving a sharp divergence in global IPO markets, dominating first-quarter listings in Hong Kong and outpacing U.S. tech peers as investor sentiment fractures across regions.
Consider the trend: Chinese AI firms listed in Hong Kong accounted for four of the largest public listings in the first quarter. According to new data from PitchBook, these companies — Z.ai, MiniMax, Biren Technology and Iluvatar CoreX Semiconductor — collectively helped drive more than $22 billion in AI-related exit value during the quarter.
Adding Edge Medical, a surgical robotics company, brings the total for all five Chinese listings to over $24 billion.
The performance stands in sharp contrast to the muted reception many U.S. technology IPOs have faced. Investors have grown increasingly skeptical of richly valued software companies amid concerns that AI could disrupt traditional software business models.
“It’s genuinely a confluence of factors rather than any single driver,” Harrison Rolfes, senior research analyst at PitchBook, told Global Finance. “The DeepSeek moment in early 2025 fundamentally shifted investor perception of Chinese AI capability, and that rerating carried momentum into these listings.”
Rolfes said geopolitical considerations also played a major role, creating what he described as a “national champion premium” among investors in Hong Kong and broader Asian markets.
“Structurally, these companies came to market at more digestible valuations relative to their growth profiles compared to U.S. tech IPOs, which have repeatedly disappointed at high entry multiples,” he said.
Investor enthusiasm surrounding Chinese AI firms has emerged as U.S. IPO performance deteriorates.
A Record Stretch of IPO Underperformance
According to PitchBook data, the median U.S. IPO has underperformed its benchmark by 42 percentage points within 120 days of listing over the trailing 12 months.
“That’s historically the worst stretch in our dataset,” Rolfes said.
PitchBook noted that 2025 already represented a record low, with median IPOs trailing benchmarks by 35.6 percentage points after 120 days. Early 2026 listings are performing even worse, according to the report.
The closest comparison, Rolfes said, was the post-boom correction in 2021, when median U.S. IPOs lagged their benchmarks by 32 percentage points following aggressive pricing during the .
Globally, the median venture capital-backed IPO has underperformed the Morningstar U.S. Market Broad Growth Extended Index—a broad U.S. equity benchmark—by nearly seven percentage points over the past year. In the U.S., the index as a growth-stock yardstick shows that the gap widens sharply to 42 percentage points within 120 days of listing.
Roughly 66% of companies that have gone public since the start of 2025 are currently trading below their IPO prices, PitchBook found.
“The deterioration is progressive, suggesting that initial pricing optimism is giving way to fundamental reassessment as lockup expirations approach and more information reaches the market,” according to the May 5 report.
The divergence in performance has been particularly stark among high-profile tech listings.
SaaSpocalypse to Blame?
CoreWeave, based in Livingston, New Jersey, saw its shares nearly triple since its debut as investor demand for AI computing infrastructure accelerated. But many other venture-backed listings have struggled—badly.
Among the U.S.-listed laggards are shares of eToro, down 45.2%; Netskope, down 61%; Klarna, down 67.1%; Figma, down 85.7%; and Gemini Space Station, down 86.3%.
PitchBook said broader public SaaS markets have also weakened as investors increasingly treat AI as a threat to incumbent software firms rather than a growth catalyst.
“Public markets appear to be treating AI not as a tailwind for existing software but as a displacement risk, which many are calling a ‘SaaSpocalypse,’ in which incumbents are repriced downward even as private AI unicorns command record valuations,” according to the report.
For investors, the divergence raises questions about whether U.S.-listed AI companies still offer the best risk-adjusted exposure to the global AI boom.
“The companies leading Hong Kong’s surge — semiconductor designers, applied AI platforms and robotics-adjacent businesses — are generating real revenue with defensible vertical positioning, and they have outperformed their U.S. counterparts by a wide margin,” Rolfes said.
What’s Next?
Expect investors to take a closer look at how heavily their portfolios are tilted toward specific geographies, considering AI-related valuation premiums are persisting longer in Hong Kong than in New York.
Rolfes also cautioned that some of the highest-valued Chinese AI names could eventually face corrections. Still, the underlying businesses are stronger than many Western investors have assumed, he argued.
“The broader takeaway,” he said, “is that Chinese AI has likely graduated from a risk to monitor to a market to understand.”
The longest sea crossing connects three major cities
14:54, 27 Apr 2026Updated 14:54, 27 Apr 2026
The Hong Kong-Zhuhai-Macau Bridge is the longest ever sea crossing on record(Image: CHUNYIP WONG via Getty Images)
Stretching 34 miles across the Pearl River Delta, the Hong Kong-Zhuhai-Macau Bridge holds the record as the longest sea crossing ever constructed, connecting the southern Chinese cities of Hong Kong, Zhuhai and Macau. The 55km structure took nine years to build at a cost of approximately £15bn.
It has dramatically cut journey times between the three cities, transforming what was once an hour-long ferry trip into a drive of roughly 40 minutes. The bridge forms part of a broader initiative to strengthen transport links across the Greater Bay Area, a region the Chinese government is nurturing into a major economic powerhouse.
By connecting Hong Kong and Macau more directly with cities in Guangdong province, the crossing is designed to boost trade and movement throughout the region. Its construction incorporates several key elements, including a series of long-span bridges, man-made islands and connecting roads.
The main section features three navigation channel bridges – Jiuzhou, Jianghai and Qingzhou.
This was constructed to permit large vessels to pass through one of China’s most heavily trafficked shipping zones.
Engineers were required to contend with challenging conditions, including regular typhoons and a demanding marine environment, reports the Express.
The bridge employs single-column piers embedded in the seabed to minimise disruption to water flow and reduce the impact on local wildlife, including the Chinese white dolphin.
The three principal bridges feature cable-supported structures, each boasting a distinctive tower design.
These were designed to provide the crossing with a uniform yet diverse aesthetic, especially considering its prominence from land, sea and air.
The Jiuzhou Bridge maintains its original sail-shaped towers after modifications during the detailed design stage.
Engineering consultancy Arup played a role in various aspects of the scheme, including preliminary design work, artificial island construction and significant road and tunnel connections on the Hong Kong and Macau sides.
Further infrastructure associated with the crossing encompasses boundary crossing facilities and links such as the Tuen Mun-Chek Lap Kok Link, assisting in incorporating the bridge into the broader transport network.
Since its inauguration, the bridge has emerged as a vital route within the region’s transport infrastructure, demonstrating both the magnitude of China’s infrastructure objectives and the practical requirement for quicker links between its major urban centres.
Chris Granet visited a cafe that is a cross between a British greasy spoon and an American diner, with friendly staff, and very busy with locals and foreigners alike
Chris Granet tucked in
Fried Bacon? Check.
Sausage? Check.
Scrambled egg? Check.
Fried fish in breadcrumbs? …Say what now??
I was in a cha chaan teng – a traditional Hong Kong cafe – in the bustling Wanchai district about to tuck into their version of the English breakfast, which had been introduced during the colonial era.
This cha chaan teng was the Victory A Cafe on the bustling Hennessy Road. It was like a cross between a British greasy spoon and an American diner, with friendly staff, and very busy with locals and foreigners alike. Always a good sign.
My plate was fully loaded and well presented when it arrived. As well as the aforementioned items, there were also baked beans, a smidge of salad and tomato, a glazed brioche bun, and garnished prettily with some nondescript diced green leaves. On the side, there was the obligatory milky tea.
In terms of taste, it was also “same, same but different”. The bacon was a bit fatty, the sausage a tad bland, but the beans were decent. The egg, on the other hand, was superior. Light and fluffy, yet rich and buttery – for in Hong Kong, they’re often made with cream and cornstarch.
And now for the fried fish. I know it sounds wrong, but it’s like when European folk are presented with an English breakfast for the first time and wince at the sight of sausage and bacon. That is, until they have a taste and are pleasantly surprised.
Well, that was me. It turned out to be my favorite thing on the plate, and was made all the better with a splash or a few of local chili sauce (far better than a bit of brown, if you ask me).
And the tea was no ordinary tea. It was made with “silk stockings”. Not real silk stockings, that’d be weird. No, these are narrow cotton bags through which potent Ceylon tea leaves are repeatedly strained, and more resemble granny tights than fancy stockings. The brew created is so strong it could strip paint, despite being half-drowned in condensed milk. Very good, though.
To cap it all off I had a “pineapple bun”. No pineapples are harmed in the making of these traditional local buns, it’s just that their mottled yellow toppings apparently resemble the tropical fruit (couldn’t see it myself).
I again was pleasantly surprised. Once biting through the crusty sugary top, the inside was soft and doughy with a much more subtle sweetness – an interesting combo of flavours and consistencies, and washed down well by the strong tea.
In total, my bill came to HK$85 (£8.50) – $62 for the breakfast, $23 for the pineapple bun. Not too bad considering it left me stuffed and not hungry again until dinner.
For all the ills of colonisation, there are some positives, and the Hong Kong breakfast is definitely one of them. Worth travelling 6,000 miles for.
BOOK IT
Cathay Pacific flies direct to Hong Kong from London, from £549 return. Book at cathaypacific.com Dorsett Wan Chai has doubles from £113 per night with breakfast. Dorsett Kai Tak has doubles from £115 per night with breakfast. Both hotels offer complimentary shuttle service to major transport hubs, shopping, and dining destinations. Find out more and book at dorsetthotels.com
It’s best known for its mighty concrete jungle, but Chris Granet discovers Hong Kong’s greener side, with forested peaks to hike and pristine coastline and islands to explore
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Hong Kong is full of surprises (Image: Getty Images)
The sunshine glittered off the jade waters as we chugged gently out of the busy harbour. Surrounding us were dozens of traditional fishing boats, like the one I was on. Surrounding them was a horizon full of hills, soaring out of the sea and carpeted in lush forests.
Our destination was Sharp Island in the distance, a tiny coral-encircled gem that could’ve been Thailand, Vietnam, or any remote region of Southeast Asia. Surprisingly, I was in Hong Kong. I say that surprisingly because when you think of Hong Kong, you think of the typical Asian megacity. Dense urban living. High-rises and hustle. Manic traffic and neon nightscapes. All of which are true of Hong Kong, and fantastic to experience, but what most people don’t realise is that you can also get off the beaten track within minutes and find pristine nature and beaches.
Formed by supervolcanic eruptions, the territory comprises 430 subtropical square miles across 263 islands, endless peninsulas, and swathes of craggy mainland. Nestled at the heart of this is the main Hong Kong Island and city, which for me has to be one of the world’s best cities for natural settings. However, it’s far from remote – it’s the fourth most densely populated region in the world, with 7.5 million residents. Everywhere you look in the city are tightly packed groves of skinny tenement blocks. It’s like nowhere I’ve ever seen. “We have very little flat land here,” explained our guide. “Most of it is made from demolished hills or reclaimed from the sea – we have to build upwards, not outwards.” But this also means 53% of the land is still forest, with 40% designated as country parks.
The quickest way to experience this would be to journey up Victoria Peak, which stretches up behind the city but is usually obscured by the vertiginous towers. We headed over to the Peak Circle Walk, which gently loops around the summit, on a stroll that encompassed tranquil woodlands and cinematic views of the world-famous skyline and bay below. Magnificent. If you want to avoid the crowds, then there are several trails back down to the city, which are made all the more pretty in the evening once the towers start turning on their technicolored light shows. Hong Kong Island’s southern side is another quick escape into nature, with curving coastal roads, low-rise neighbourhoods, cute coves, and those ubiquitous jungled hills.
It was a gloriously sunny day when I walked the Dragon’s Back trail on the most southeastern peninsula. The name is attributed to the ridge rolling between gentle peaks that resembles the mythical creature’s spine, tumbling down to a bay on one side, and the sea on the other. Despite it being November, it felt like summer as we then made our way down through the woodlands to Big Wave Bay, a glorious golden arc of sand that’s just one of over 100 beaches in the territory. We sat and had a light lunch and a glass of vino in the shade of an outdoor cafe while watching the surfers ride the crashing waves. Bliss.
Nearby, giant Lantau Island has plenty of options. Connected to the mainland by bridges, it’s home to the massive airport – but I took a different sky ride in the glass-bottomed Ngong Ping 360 cable car. It whisked us up and away from a generic concrete suburb over swathes of that lush greenery to the lofty Po Lin Buddhist monastery. The walk from the cable car terminal to the monastery was lined on both sides with tourist shops – not quite the spirit of immaterialism Siddhartha had intended, but handy for those, like me, in need of another coffee. The ornately pretty monastery is famous for its large seated Buddha statue, which we reached via a long flight of stairs as breathtaking as the panoramic views at its summit. On the coastline nearby is the picturesque fishing village of Tai O, with scores of ramshackle wooden houses precariously propped up on stilts on the sides of a little estuary. It was all very quiet as we wandered its maze of backstreets, feeling a hundred miles and years from Hong Kong city. But it perked up as we reached its busier center, and at The Crossing Boat restaurant overlooking the river, we sat at a spinning table and shared a sizzling seafood lunch. Prawn, scallops and fish all locally caught, plus an array of Cantonese stir fries.
If you want proper pristine, then head up to the 58 square mile Hong Kong Unesco Global Geopark on a wild peninsula, with a cluster of islands fanning out from the mainland. It’s the epicentre of the volcanic drama that shaped the region, sculpting surreal honeycombed sea caves, hexagonal rock columns and sheer cliffs, softened over the eons by ocean erosion and dusted with white sand beaches. Truly spectacular. It’s here that Sharp Island is located. It’s easily accessible from the chirpy tourist town of Sai Kung, with its busy harbourfront heaving with seafood restaurants and boat crews clamouring to offer you tours and rides to the many destinations around the Geopark. The usual price for a return ticket to Sharp Island is 50-60 Hong Kong dollars per person (approx £6), but our group of six paid 150HKD pp (approx £15pp) as we chartered the whole boat. Said boat was a little wooden fishing vessel, like most of the others in the harbour, all prettily painted in nautical blues and greens.
I sat perched at its front basking in the high sun for the 15 minutes it took to chug over to the little island’s southern tip. There, our surly boatman dropped us off, then made his way to the northern tip, where he collected us up later. We hiked the 1.5 mile long trail, a ridge walk similar to Dragon’s Back, offering more postcard-worthy views. Branching off Sharp’s northwestern shore is its Instagram-famed bar of shingle and rock that connects it to Kiu Tau islet. It’s only visible during low tide and was sadly in the process of being re-swallowed by the sea as we arrived.
Further offshore are plenty of snorkelling opportunities as, incredibly, Hong Kong is home to more coral species than the entire Caribbean combined, as well as over a quarter of all of China’s marine biodiversity.
Back at Sai Kung harbour, we indulged in more sizzling seafood, with hearty dishes big enough to share, like the fully stacked braised crab roe and shrimp casserole, at a reasonable £10 a pop. Very nice indeed. As I sat digesting our meal, staring out to sea and watching the Saturday afternoon crowds ambling through the sunshine, it was easy to forget that I was still in the midst of a roaring megametropolis.
BOOK THE HOLIDAY
Cathay Pacific flies direct to Hong Kong from London, from £549 return. Book at cathaypacific.com Dorsett Wan Chai has doubles from £113 per night with breakfast. Dorsett Kai Tak has doubles from £115 per night with breakfast. Both hotels offer complimentary shuttle service to major transport hubs, shopping, and dining destinations. Find out more and book at dorsetthotels.com
Hong Kong fire survivors return to Wang Fuk Court five months after a blaze killed 168 people. Thousands of displaced residents sifting through charred remains searching for belongings found little intact.
