Chinese chip designer Montage Technology shares increased about 60 percent in its Hong Kong trading debut on Monday following an initial share sale that surged up to $902 million.
Its stock went up to HK171, having priced its offering at HK$106.89, the upper end of the range. It was 52 percent greater in afternoon trading.
The Shanghai-based company was established in 2004 to work on high-performance semiconductors, which are mainly used in cloud computing, data centers, and artificial intelligence applications.
Its Hong Kong public tranche was oversubscribed over 700 times, and the international offering was nearly 38 times covered, indicating high interest among investors in Chinese AI and semiconductor names.
According to LSEG data, Montage technology is also listed in the mainland with a market capitalization of approximately $27 billion.
The listing is part of a rising number of Chinese AI chip companies using capital markets in recent months, including GigaDevice Semiconductor and OmniVision Integrated Circuits, introduced in January.
Other semiconductor companies like Biren Technology, MetaX, Moore Threads, and Shanghai Iluvatar CoreX Semiconductor have also recently been listed.
The wave of IPOs is accompanied by the fact that Beijing intensifies its efforts to become self-sufficient in the sphere of advanced chips and reduces the market dependence on American designers, such as Nvidia, which are not allowed to sell their most sophisticated chips to China.
The market is increasingly becoming competitive, with the Chinese technology powerhouse Huawei and its chip maker HiSilicon controlling a large portion of the domestic market.
Therefore, Nvidia may be experiencing a market recovery following the Trump administration’s cutting a clearance path to sell its H200 chip to China. Although the H200 is trailing behind some of the most advanced technologies offered by Nvidia, it is already much stronger than any AI chip that has previously been sold in the Chinese market.
A report from Reuters stated that China had given the green light to a first wave of H200 imports in several domestic technology firms, such as ByteDance, Alibaba, Tencent, and DeepSeek, in late January.
The unknown sources indicated that the report further indicated that Beijing was merely giving approvals on certain conditions, and that the final set of rules remained pending.
