Chinese artificial intelligence firm Z.ai surged 42% on its initial public offering in Hong Kong, closing at HK$18.70 per share. The debut marks a major milestone for China's emerging AI sector.
- Z.ai debuted on Hong Kong Exchange at HK$12.60 per share
- Stock closed at HK$17.95, up 42% on first day
- Raised HK$3.8 billion ($488 million) in IPO
- Institutional subscription rate exceeded 28x oversubscription
- Post-IPO valuation reached HK$45.2 billion
- 1.2 million retail investors participated in applications
Z.ai, a Shanghai-based artificial intelligence company focused on large language models and enterprise automation, made a strong market entrance on January 8, 2026, listing on the Hong Kong Stock Exchange under ticker symbol ZAI. The stock opened at HK$13.60 and climbed to a peak of HK$18.70 before settling at HK$17.95, reflecting a 42% increase from its issue price of HK$12.60. This performance placed it among the top-performing tech IPOs in Asia this year. The company raised approximately HK$3.8 billion ($488 million) during the offering, with institutional investors subscribing over 28 times the available shares. Retail demand also proved robust, with over 1.2 million individual investors participating in the application process. Z.ai’s valuation rose to HK$45.2 billion post-debut, underscoring investor confidence in China’s domestic AI ecosystem amid growing global competition. The successful listing follows a series of high-profile tech debuts in Hong Kong, including other AI-focused startups that have drawn substantial interest this quarter. Analysts point to increasing government support for AI development, favorable regulatory changes, and rising demand for digital transformation solutions across Chinese industries as key drivers behind the strong performance. Market watchers note that Z.ai’s success could encourage more homegrown AI firms to pursue listings in Hong Kong, which has emerged as a preferred gateway for Chinese tech companies seeking international capital without U.S. regulatory scrutiny. The rise also highlights investor appetite for AI infrastructure and applications beyond established players like Alibaba and Tencent.