The decision for two leading Chinese large language model companies to pursue listings on the A-share market, while not entirely unforeseen, has sent ripples through the Hong Kong stock market, leading to significant price corrections for both firms.
By initiating a dual listing structure with shares in both Hong Kong and mainland China, these companies will inevitably expand their share capital. If future revenue growth does not keep pace with this expansion, key metrics like net assets and potential earnings per share could face dilution. Furthermore, a portion of their rapid share price appreciation in Hong Kong was attributed to a scarcity premium, as they were among the only domestic AI model companies listed. This premium may diminish once they list on the A-share market.
The core of the matter lies here. Previously, both KNOWLEDGE ATLAS and MiniMax, in need of development capital, opted for initial public offerings in Hong Kong. Their current move coincides with a regulatory opening from the China Securities Regulatory Commission. In June 2025, the CSRC introduced policies to enhance the Sci-Tech Innovation Board's (STAR Market) inclusiveness, expanding the scope of its fifth set of listing criteria to support companies in frontier technology sectors like artificial intelligence, commercial aerospace, and the low-altitude economy.
Therefore, the return of these AI giants to the A-share market signifies more than just fundraising. It marks the beginning of China's domestic capital market taking on the role of nurturing and incubating new strategic national assets in core technology sectors. This is not merely a corporate financing choice but a crucial step for the STAR Market, as the primary platform for hard technology, in supporting future national strategic technological assets.
Over the past two decades, the stars of China's capital market were sectors like banking, real estate, and manufacturing. Now, the focus of support is shifting towards technological infrastructure, particularly AI infrastructure. The return of KNOWLEDGE ATLAS and MiniMax to the A-share market represents the start of integrating AI infrastructure into the national capital market system, paving the way for more companies in AI, commercial aerospace, and other frontier tech fields to accelerate their listings.
This shift is driven by macroeconomic factors. Firstly, AI foundation models are poised to become the underlying operating system for the entire digital economy, which itself is a critical component of China's new infrastructure, warranting significant attention. Secondly, from a competitive standpoint, advancements in AI and commercial aerospace are key to national competitiveness, representing a super-competition of "computing power + capital." Future Chinese competitors like Anthropic, OpenAI, and SpaceX are active in capital markets, receiving continuous support from U.S. investors. Chinese frontier tech firms, especially large model companies, must establish a robust, domestically-rooted capital chain insulated from external volatility, which includes patient capital from the A-share market.
On one hand, the relative scarcity of such companies in the A-share market may afford hard tech firms greater long-term tolerance from investors. On the other hand, with the recent and upcoming listings of these model companies and other hard tech firms, the capital market might face short-term liquidity pressures. However, from a long-term perspective, even setting aside the broader narrative, this presents a positive development for ordinary investors.
Reviewing the A-share market rally since September 2024, the strong performance of manufacturing companies within the AI supply chain has been a major driver. This highlights both the strength of China's tech industry in the AI era and a shifting focus for capital market support. Previously, the focus was largely on the "pick-and-shovel" providers—companies in optical modules, PCBs, liquid cooling, and data centers. However, listed entities that actually create intelligence remained scarce, leading to a long-standing market phenomenon where computing power was valued more highly than the models themselves. The return of KNOWLEDGE ATLAS and MiniMax means ordinary investors can now invest directly in the "AI brain," rather than just the surrounding computing power supply chain. This signifies a maturing of the AI investment logic in China's capital market, as the industry chain progresses from the "tool sellers" phase to the "gold miners" phase.
Although KNOWLEDGE ATLAS and MiniMax were first to list in Hong Kong, they are not China's top-tier large model companies. From this perspective, their push for STAR Market listings carries significance far beyond the IPOs themselves. They are pioneers, and more exceptional AI companies are expected to follow and list on the A-share market in the future. For some time, the development path for many Chinese tech firms involved moving from R&D to venture capital funding and finally to overseas listings. The AI era is reshaping this logic, with the A-share capital market now poised to play a more pivotal role.
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