China's Victory Giant rallies in Hong Kong debut
Shares in Chinese tech firm Victory Giant Technology Huizhou, a supplier to US chip giant Nvidia, surged almost 60 percent on their Hong Kong debut on Tuesday after the company raised more than US$2 billion in the city’s largest listing so far this year.
Victory Giant Technology Huizhou said it plans to allocate most of the proceeds toward expanding production capacity in mainland China, News.Az reports, citing AFP.
The development comes as China intensifies efforts to strengthen domestic manufacturing of microchips used to train and operate generative artificial intelligence tools, aiming to compete with the technological leadership of the United States.
Shares of the Guangdong-based company jumped 59.6 percent in early trading to HK$335 (US$43), after being priced at HK$209.88, with the offering raising HK$17.3 billion (US$2.2 billion).
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Victory Giant, which is already listed in Shenzhen, produces high-end printed circuit boards (PCBs), an essential component used in AI servers. One of its major clients is Nvidia, currently the world’s most valuable company amid surging global demand for AI chips.
The initial public offering marks the largest since Zijin Gold International raised US$3.7 billion in September. It also represents the latest in a series of high-profile listings by Chinese AI-related companies in Hong Kong, signaling continued investor confidence in China’s ambitions in the sector.
Nvidia’s most advanced AI chips are restricted from sale in China under US export controls that Washington says are designed to safeguard national security.
In response, Beijing has been accelerating initiatives to develop advanced domestic semiconductor capabilities and reduce reliance on US technology.
“China continues to prioritise AI infrastructure, advanced manufacturing, and semiconductor-adjacent supply chains as strategic sectors,” said Dilin Wu in comments to AFP.
As a result, “companies like Victory Giant benefit from both policy support and financing accessibility,” she added.
Although demand for high-end PCBs remains strong due to heavy global investment in AI servers and data centres, Wu warned that elevated prices may not be sustained indefinitely.
“The current cycle is still characterised by tight supply in high-end PCB manufacturing,” she said.
“Whether this persists will depend on how quickly global and domestic capacity catches up with AI-driven demand growth.”
This year has already seen strong IPO activity in Hong Kong from major Chinese AI startups such as Zhipu AI and MiniMax, alongside graphics processing unit developer Shanghai Biren Technology and chipmaker OmniVision Integrated Circuit Group.
By Nijat Babayev
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