Opinion | Tech Stocks Surge in China & Hong Kong, Catching Up with Taiwan

For decades, Taiwan has been the undisputed first thought for investors seeking exposure to the semiconductor and hardware sectors, buoyed by its complete supply chains and stellar integrated circuit design firms. However, a structural shift in China's capital markets over the past two years is rewriting that landscape.

Through a wave of intensive listings and massive fundraising on both A-shares and Hong Kong's H-shares, Chinese markets are forging a new "tech capital" identity centered on "new quality productive forces."

This capitalization wave, driven by the impending 15th Five-Year Plan, spans four key tracks: semiconductors (specifically AI and GPUs), upstream memory materials, robotics, and biotechnology.

The Rise of "Computing Power" Semiconductors

While mobile SoCs dominated the previous decade, the last two years have seen capital concentrate heavily on "computing power." AI inference, general-purpose GPUs, and interconnects have become the primary drivers for high valuations and direct IPO funding. （Related： Opinion | Drones Appear on Chinese Ships, Allow Reconnaissance for Amphibious Operations ｜ Latest ）

In 2025, A-share IPO fundraising totaled approximately 125.32 billion yuan ($17.3 billion), with nearly half directed toward tech innovation sectors. Electronics led the pack in both fundraising amounts and the number of companies, signaling that the market now treats tech firms as its most critical fundraising pool.

Hong Kong: A Hub for Robotics and Biotech

While A-shares focus on manufacturing capabilities, Hong Kong has emerged as the primary stage for robotics and new economy listings. The exchange has shown a willingness to capitalize companies that require substantial R&D spending before reaching profitability.

By mid-2025, over a dozen robotics companies had submitted applications to the Hong Kong Stock Exchange (HKEX). Geek+, a logistics robotics firm, raised over HK$2.7 billion in July 2025, marking one of the sector's largest IPOs.

In biotechnology, Hong Kong's Chapter 18A mechanism continues to support pre-revenue companies. In 2025, 26 biomedical companies were listed in Hong Kong, raising a combined HK$29.27 billion.

The introduction of Chapter 18C in 2023 further broadened access for "specialist technology companies." XtalPi, which integrates quantum physics and AI for drug discovery, became the first listing under this rule in June 2024. By early February 2026, its market value exceeded HK$50 billion. （Related： Opinion | Drones Appear on Chinese Ships, Allow Reconnaissance for Amphibious Operations ｜ Latest ）

A Warning for Taiwan

Market analysts warn that the sheer speed of this capitalization—where HKEX ranked first globally in 2025 with $36.6 billion in fundraising—poses a strategic challenge to Taiwan's traditional dominance.

Observers note that Taiwan cannot rely solely on existing supply chain advantages. As mainland China and Hong Kong use capital markets to accelerate technology catch-up in computing power, advanced packaging, and robotics, Taiwan faces a risk of losing its pricing power and talent attraction advantages if it does not actively upgrade its own industrial and capital strategies. 

​*The author is founding chairman of the Taiwan M&A and Private Equity Association and forward-looking policy advisor to the Xinyou Association. This article is provided by the Xinyou Association and authorized for publication.​
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