Shares in Zhongji InnoLight, a leading Chinese manufacturer of high-end optical components for AI data centres, fell sharply during its Hong Kong debut on Thursday. The company raised at least US$6.8 billion, marking Hong Kong's largest IPO since 2019.
Market Reaction
The Shenzhen-listed firm saw its shares drop more than 8.5 percent to HK$895 shortly after opening, despite pricing the shares at HK$980. This raised about HK$53.4 billion (US$6.8 billion) in the significant public offering.
US Blacklist and Market Concerns
Zhongji InnoLight is among several Chinese firms blacklisted by the US Department of Defense in June due to alleged military ties. The company denied these claims in its filing to the Hong Kong stock exchange, stating it has not engaged in any military-related activities. However, it warned investors that the blacklist may lead to increased scrutiny and potential further government actions.
The company's debut comes amid a global race for AI dominance between China and the United States, driving the expansion of data centres worldwide. Despite the initial drop, the listing indicates ongoing investor optimism for China's ambitions in the AI sector.






























