• DeepSeek AI’s IPO is part of a larger wave of Chinese companies seizing a prime opportunity to go public in Hong Kong.
  • Market conditions are aligning as IPO candidates, investors, and regulators collaborate to revitalize Hong Kong’s public listings.
  • With 15 IPOs raising HK$17.7 billion ($2.27 billion) in Q1 2025, Hong Kong’s IPO market is seeing its strongest start since 2021.

DeepSeek AI has caused huge stirs in the Hong Kong financial market with its initial public offering (IPO). After filing for an IPO, the artificial intelligence (AI) startup has garnered major investor interest, leading to an increased market anticipation and speculation about its valuation.

“Everyone is working so perfectly together. IPO candidates, the investor and the regulators,” said George Chan, global IPO leader at EY.
“All these three parties are working so perfectly at this moment to actually cultivate a healthy Hong Kong IPO market.”

Global companies are looking forward to an opportune time to go public as global investors have returned to the region following the news of DeepSeek's AI breakthrough early this year.

Despite the current tariff war with the U.S., a sense of excitement has taken over Hong Kong recently.

“The U.S. long-term fund has returned. It shows investors are getting more confident [about] China,” he said, adding that post-IPO performance has also been encouraging.

Hong Kong’s IPO market has had its strongest start in years. In the first quarter of 2025 alone, the city saw 15 IPOs raise HK$17.7 billion ($2.27 billion), marking its best Q1 performance since 2021, as per KPMG data.

The influx of new listings signals growing confidence in Hong Kong’s position as a key financial hub.

With AI taking over the world like a whirlwind, DeepSeek AI's IPO is expected to draw in particular interest from across the globe.

“Chinese regulators are encouraging companies to list in Hong Kong to broaden financing channels and support the outbound merger and acquisition needs of Chinese enterprises,” the firm said.

Six initial public offerings in Hong Kong raised more than 1 billion Hong Kong dollars ($130 million) in the first quarter — a jump from just one listing of that size in the year-ago period — according to KPMG.

Edited by Harshajit Sarmah