Chinese technology and e-commerce giant Alibaba announced Tuesday evening that the Hong Kong Stock Exchange would allow the company to spin off its semiconductor subsidiary T-Head.
To do so, Alibaba announced plans to launch a public offering of T-Head shares in Hong Kong, subject to approval from the stock exchange and the China Securities Regulatory Commission.
The filing did not disclose a date or proposed size for a listing.
Alibaba said it had already confidentially filed an application on September 11 to list T-Head on the Hong Kong Stock Exchange.
Meanwhile, Alibaba’s Hong Kong-listed shares fell 1% on Wednesday morning. The stock is down about 29% year to date.
In late September, Alibaba announced its next-generation AI chip, the Zhenwu V900, which it said offers three times the performance of its predecessor, the Zhenwu M890, released in May.
Alibaba is one of several Chinese companies, including Huawei, developing local semiconductors to power artificial intelligence, amid growing U.S. restrictions on China’s ability to access chips.
Short seller Culper Research claimed in May that Alibaba was able to obtain restricted securities Nvidia chips by indirectly financing entities in Southeast Asia. Alibaba did not immediately respond to a request for comment.
News of Nvidia CEO Jensen Huang’s affair with an alleged Chinese spy involved in one of these entities sent the stock tumbling to its lowest valuation since late March, weighing on the entire U.S. stock market.
Amid volatility in tech stocks, U.S. AI giant Anthropic said in an updated filing on Tuesday that it will offer 825 million shares in its upcoming IPO at a price between $70 and $78 per share.
Trading on Nasdaq is expected to begin on November 19, people familiar with the details told CNBC. They were granted anonymity because they were not authorized to speak publicly.
Chinese tech stocks have underperformed their U.S. counterparts, despite investor enthusiasm last year around DeepSeek’s AI breakthroughs.
Baidu Reportedly delayed the listing of its AI chip entity Kunlunxin, as did Chinese memory chip company YMTC, according to reports this month. Neither company immediately responded to requests for comment.
In recent months, Chinese financial regulators have increased their scrutiny of technology IPOs and the flow of capital into the sector.
—CNBC’s Fred Imbert, Ashley Capoot and Leslie Picker contributed to this reportt
Gn bussni
