Three Mainland China-Based Companies Launch IPOs on Hong Kong Stock Exchange

Three mainland China-based companies, including artificial intelligence software firm Beijing Fourth Paradigm, have launched their initial public offerings (IPOs) on the Hong Kong Stock Exchange. The companies aim to collectively raise up to $280 million.

Beijing Fourth Paradigm, an AI startup founded in September 2014, plans to raise up to $144 million in its IPO. The company’s products have been deployed across various sectors such as finance, retail, manufacturing, healthcare, energy and power, telecommunications, and others.

In this IPO, three cornerstone investors led by New China Capital Management have subscribed for approximately $96.8 million worth of stock, accounting for 70.6 percent of the offering.

Alongside Fourth Paradigm, Neusoft Xikang, a cloud hospital platform, aims to raise between $81 million and $101 million by selling 133.8 million shares. ZX Inc, a mobile games operator, is offering 18.97 million shares priced between HK$11 to HK$14 each with the intention to raise between $27 million and $34 million.

Earlier this year, Fourth Paradigm was included in the U.S. “Entity List,” which restricts U.S. suppliers from shipping technology to the company unless they can secure a difficult-to-obtain license from the Commerce Department.

These IPOs reflect a wider trend of Chinese companies seeking public listings in Hong Kong due to regulatory scrutiny and market volatility.