- AI deal frenzy begins as Chinese tech companies seek capital for AI expansion.
- Hong Kong's Q3 share sales reached a record $47.5 billion, pushing the total for 2026 above $92 billion.
- Alibaba's $10.2 billion follow-on offering was the quarter's largest transaction, while Zhongji Innolight raised almost $8 billion in Hong Kong's biggest listing in nearly seven years.
- Z.AI raised $9.6 billion this year through its IPO, placements, and convertible bonds, with other firms returning to the market post-lockup.
- Asia-Pacific Q3 share sales topped $120 billion, the highest in six years.
- Investor caution is growing as only two of Hong Kong's top 10 deals are trading above their offer price.
- The activity reflects growing capital requirements among Chinese companies competing in AI and related technologies.
- Some businesses are returning to equity markets only months after earlier fundraising rounds, indicating a shift in strategy.
- Higher bond yields and expectations for further Federal Reserve rate increases are tightening financial conditions.
Hong Kong's share sales reached a record $47.5 billion in the third quarter of 2023, fueled by a frenzy of fundraising in the artificial intelligence sector. This total marks the largest amount ever raised during this period, significantly boosting the city's fundraising total for 2026 to over $92 billion.2
The surge in capital-raising activities is largely attributed to Chinese technology companies seeking funds to expand their AI capabilities. Alibaba Group's $10.2 billion follow-on offering was the largest transaction of the quarter, while Zhongji Innolight raised nearly $8 billion, marking Hong Kong's biggest listing in almost seven years.3
According to Bloomberg, the activity reflects a growing trend among companies to return to equity markets more frequently, with AI model developer Z.AI raising $9.6 billion this year through various funding methods. James Wang, head of Asia ex-Japan equity capital markets at Goldman Sachs, noted, “People raise capital right out of lockup and tend to do so more frequently.”47
The fundraising boom is not limited to Hong Kong; the Asia-Pacific region saw share sales exceed $120 billion in Q3, the highest in six years. However, rising bond yields and poor deal performance are prompting caution among investors. “Investors will be more selective,” Wang added, highlighting the ongoing demand for AI-related investments.5
As the year progresses, the momentum in fundraising is expected to continue, with many companies eager to capitalize on the AI boom.
“Alibaba's $10.2 billion follow-on was the quarter's largest deal, while Z.AI raised $9.6 billion this year. However, only two of Hong Kong's 10 biggest deals since July trade above offer price, and the MSCI Asia-Pacific Index fell 7% in July.”
Yahoo Finance Singapore
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