Biren Technology IPO Analysis and Evaluation of HKEX Chapter 18C System Effectiveness

Based on the latest market data, I will systematically analyze from two dimensions: the predictive value of oversubscription and dark pool performance, and the effectiveness of HKEX’s Chapter 18C system.

Biren Technology (Stock Code: 6082.HK), as one of the “Four Little Dragons of Domestic GPU”, is the largest IPO in terms of fundraising scale since the implementation of HKEX’s Chapter 18C listing system. According to online search data [2][4]:

• Offer Price Range
  : HK$17.00-19.60
• Issuance Size
  : 248 million shares
• Fundraising Scale
  : Up to HK$4.855 billion (approx. US$623 million)
• Listing Date
  : January 2, 2025
• Sponsors
  : CICC, Ping An Capital (Hong Kong), BOC International Asia

Biren Technology’s IPO set multiple records [2][4]:

• Oversubscription Multiple
  : 2363x (public offering portion)
• Number of Subscribers
  : 476,000
• Frozen Funds
  : HK$579.6 billion
• By Number of Subscribers
  : Became the new stock most snapped up by retail investors in the past year, surpassing Jushuitan (386,800 applications)

According to Futu Trading Platform data [8]:

• Dark Pool Closing Price
  : HK$35.08
• Gain vs Listing Price
  : 79% (calculated based on listing price of HK$19.6)
• Dark Pool Range
  : Highest HK$38.8, Lowest HK$19.6
• Active Trading
  : 18.913 million shares traded, involving HK$652 million

From historical data analysis of the Hong Kong stock market,

1. Industry Uniqueness
   : As a leading domestic AI chip enterprise, Biren Technology aligns with the current AI boom investment theme.
2. Scarcity Premium
   : A “unicorn” in the domestic GPU industry chain, the market gives it a scarcity valuation.
3. Policy Support Expectation
   : The country strongly supports the semiconductor industry, with huge room for domestic substitution.
4. Chapter 18C First Case Effect
   : As a representative specialized technology enterprise, it has received high market attention.

“It is normal for Biren to have such enthusiastic subscriptions, after all, its industry is unique and it is the most watched new stock recently. He believes that Biren’s first-day stock price will record an increase, but he is reserved about whether it will rise crazily, as the recent market sentiment is poor and market turnover is lacking.”

1. Strong Market Demand
   : The 79% dark pool gain indicates that off-exchange funds are optimistic about Biren Technology’s future performance.
2. Validation of Pricing Rationality
   : The dark pool performance shows that the offering price (HK$17-19.6) is relatively conservative, leaving room for upside in the secondary market.
3. Liquidity Support
   : Active dark pool trading (18.913 million shares) shows strong undertaking strength.

Despite strong subscription and dark pool performance,

1. Weak Market Environment
   : Recent Hong Kong stock market sentiment is poor, turnover is shrinking, which may restrict the subsequent performance of new stocks.
2. Profit-taking Pressure
   : With a 79% surge in dark pool, successful subscribers may choose to take profits on the first day.
3. Valuation Digestion Period
   : As an unprofitable specialized technology company, it needs time to verify commercialization and profitability.

“The Hong Kong stock market sentiment is weak, and funds are flowing out. Although Biren’s subscription response is very good, it is hard to say that it can replicate the exaggerated gains of A-share counterparts Moore Thread (688795.SS) and Muxi Semiconductor (688802.SS).”

• Moore Thread (688795.SS) and Muxi Semiconductor (688802.SS) saw significant gains after listing on A-shares.
• However, there are significant differences between the Hong Kong stock market environment, liquidity, and investor structure and those of A-shares.

HKEX officially implemented Chapter 18C of the Main Board Listing Rules at the end of March 2023, aiming to [6][7]:

1. Attract Specialized Technology Companies
   : Provide listing channels for uncommercialized but high-growth potential technology enterprises.
2. Benchmark International Markets
   : Compete for technology unicorn resources with markets like STAR Market and NASDAQ.
3. Enrich Market Structure
   : Change the situation where traditional industries account for too much in Hong Kong stocks and increase the weight of tech stocks.

Chapter 18C covers five strategic industries [6]:

• Next-generation information technology
• Advanced hardware
• Advanced materials
• New energy and energy conservation & environmental protection
• New food and agricultural technology

According to HKEX data [6][7]:

• March 2023 to May 2024
  : Only
  2 companies
  applied for listing via Chapter 18C
  • XtalPi (AI drug R&D)
  • Black Sesame Technologies (intelligent automotive chips)
• Main Reason
  : The market capitalization threshold is too high; among many listing systems in the mainland, Hong Kong, and the US, Chapter 18C has the highest market capitalization requirement.

“Due to the high market capitalization requirement, HKEX’s specialized technology company mechanism has only seen two specialized technology companies (XtalPi, Black Sesame Technologies) successfully list so far.”

In August 2024, HKEX announced [6]:

• Market Capitalization Threshold Reduction
  : 33% or 20%
• Effective Date
  : September 1, 2024
• Applicable Period
  : Temporary application period of three years
• Purpose
  : Enhance the attractiveness of Chapter 18C and promote more specialized technology companies to list in Hong Kong.

In the 2025 Budget, Financial Secretary Paul Chan mentioned [6]:

• HKEX is preparing to launch a “Tech Enterprise Hotline”
• Technology enterprises can conduct pre-consultation on major regulatory issues before applying for listing.

According to KPMG data [7], as of December 7, 2025:

• Specialized Technology Companies Listed in 2025
  :
  3 cases
  (Chapter 18C)
• Same as 2024
  , but with improvement in application quantity and quality
• Biren Technology became the largest IPO in terms of fundraising scale since Chapter 18C implementation
  (HK$4.855 billion)

1. Enhanced Policy Attractiveness
   : After policy optimization, leading technology enterprises have begun to choose Chapter 18C for listing.
2. Increased Market Acceptance
   : The 2363x oversubscription shows investors’ recognition of specialized technology companies.
3. Proof of Fundraising Capability
   : The HK$4.855 billion scale shows the Hong Kong stock market’s carrying capacity for technology enterprises.

1. Improved Policy Framework
   :
   • The breakthrough from 0 to 1 has been achieved, and the system design has been verified by the market.
   • The flexible policy adjustment mechanism is effective (market capitalization threshold reduction).
   • Provide diversified listing paths for technology enterprises at different development stages.
2. Market Ecosystem Construction
   :
   • Hong Kong reclaimed the top spot in global IPO fundraising in 2025 [7].
   • The proportion of tech stocks is gradually increasing, optimizing the market structure.
   • Initial effects of attracting Chinese concept stocks backflow are visible.
3. Demonstration Effect Visible
   :
   • Biren Technology’s successful case will drive more AI chip and semiconductor enterprises to list in Hong Kong.
   • Supporting measures like the “Tech Enterprise Hotline” improve service efficiency.

1. Still Low Number of Applications
   :
   • Compared to STAR Market and NASDAQ, there are still fewer listing cases via Chapter 18C.
   • Although the market capitalization threshold has been reduced, it is still high for early-stage enterprises.
2. Valuation and Liquidity Challenges
   :
   • Overall liquidity in Hong Kong stocks is insufficient, and tech stock valuations are lower than A-shares.
   • International institutional investors’ recognition of unprofitable tech companies needs to be improved.
3. System Promotion and Publicity
   :
   • Need to strengthen communication with mainland technology enterprises.
   • Simplify listing procedures and improve review efficiency.

Based on the analysis of oversubscription and dark pool performance:

• First-day Performance
  : Expected to continue the dark pool strength, but the gain may narrow (affected by market environment).
• Volatility
  : Profit-taking by successful retail subscribers may lead to stock price fluctuations.
• Key Support Levels
  : The listing price of HK$19.6 and the dark pool lowest price of HK$19.6 form strong support.

• Core Driving Factors
  :
  1. Product commercialization progress and order situation.
  2. Domestic substitution market share.
  3. Profitability improvement (key indicator for unprofitable companies).
  4. Industry policy support intensity.
• Risk Reminder
  : Need to closely monitor the trend of the US stock AI chip sector and changes in Hong Kong stock market liquidity.

1. Further Lower Threshold
   : Consider setting differentiated market capitalization requirements based on different industry characteristics.
2. Improve Supporting Mechanisms
   : Innovative measures like the “Tech Enterprise Hotline” and pre-review consultation need continuous optimization.
3. Strengthen Investor Education
   : Enhance market awareness and acceptance of specialized technology companies.

• 2026 Expectation
  : The number of listed companies via Chapter 18C is expected to reach 5-10.
• Industry Distribution
  : AI chips, semiconductors, biomedicine and other fields will become the main force.
• International Competitiveness
  : Need to form differentiated advantages with STAR Market and NASDAQ.

• Positive Signals
  : The 2363x oversubscription and 79% dark pool gain reflect the market’s high recognition of Biren Technology’s fundamentals and industry prospects.
• Limitations
  : Factors like the overall Hong Kong stock market environment, liquidity, and investor structure may restrict first-day and subsequent performance.
• Recommendation
  : Investors should focus on the company’s long-term value (product competitiveness, commercialization progress) rather than making decisions solely based on subscription popularity.

• Phased Achievements
  : Leading enterprises like Biren Technology have successfully listed, verifying the system’s feasibility.
• Policy Response
  : Optimization measures like market capitalization threshold reduction reflect regulatory flexibility.
• Future Challenges
  : Need to further increase the number of applications, improve the valuation environment, and enhance international competitiveness.

[0] Jinling API Data

[1] Yahoo Finance Hong Kong - “Biren Technology: 476,000 Subscribers, This Year’s Hottest New Stock, Unique Domestic GPU Industry, 2363x Oversubscription” (https://hk.finance.yahoo.com/news/壁仞47-6萬人認購-今年最熱新股-國產gpu行業獨特-超購2363倍-183800376.html)

[2] Wall Street Journal - “Biren Technology Plans to Raise Up to US$623 Million via Hong Kong IPO” (https://cn.wsj.com/articles/壁仞科技计划通过香港ipo筹资至多6-23亿美元-4b717986)

[3] Yahoo Finance Hong Kong - “HKEX: Many Companies Plan to List via Chapter 18C, Already Meet Chapter 8 Listing Requirements” (https://hk.finance.yahoo.com/news/財經-港交所-很多公司打算循18c上市已符第8章上市要求-100857653.html)

[4] Yahoo Finance Hong Kong - “New Stock News: Biren Technology (06082.HK) Closes at HK$35.08 in Dark Pool, 79% Higher Than Listing Price” (https://hk.finance.yahoo.com/news/新股-壁仞科技-06082-hk-暗盤收報35-082001851.html)

[5] Yahoo Finance Hong Kong - “SFC and HKEX Temporarily Relax Chapter 18C Listing and SPAC Merger Requirements” (https://hk.finance.yahoo.com/news/證監會及港交所短期放寬18c上市及spac併購要求-230619007.html)

[6] Yahoo Finance Hong Kong - “Our Hong Kong Foundation Welcomes Temporary Reduction of Chapter 18C Listing Requirements” (https://hk.finance.yahoo.com/news/團結香港基金歡迎短期-降低-18c-上市要求-012952799.html)

[7] Yahoo Finance Hong Kong - “KPMG: Hong Kong Reclaims Top Spot in Global IPO Fundraising This Year” (https://hk.finance.yahoo.com/news/畢馬威-香港今年重登全球ipo募資額榜首-料集資2-721億港元-094101459.html)