Citi sees China AI supply-chain IPOs holding firm despite valuation pullback

Wall Street has spent much of 2026 asking whether the world is overbuilding artificial intelligence. Hong Kong’s IPO market, according to Citi, has mostly answered with a shrug and a checkbook. In commentary dated October 14, 2026, Citi Research said investor appetite for Chinese AI hardware companies listing in Hong Kong remains strong. That holds even as valuations pull back and global worries about AI overinvestment keep circulating. Demand that refuses to fold According to Citi, interest from international investors is a major force behind the revival in Hong Kong IPO activity. Local liquidity and demand are also helping keep these listings stable, which gives the market support from more than one direction. AI-related listings drove a sharp rise in Hong Kong IPO fundraising during the first nine months of 2026. Citi also expects technology deals to push full-year proceeds to a record for 2026. Corrections without a collapse Some tech stocks have dropped 10% or more, whether from broader sector sell-offs or from the market’s reaction to specific IPOs. Citi’s read is that this hasn’t happened for core hardware names. Demand for those supply-chain firms has stayed robust through ...