Chinese technology and e-commerce giant alibaba Late on Tuesday, the Hong Kong Stock Exchange announced that it would allow the spin-off of its semiconductor subsidiary T-Head.
To that end, Alibaba said it plans to make a public offering of T-Head shares in Hong Kong, subject to exchange and China Securities Regulatory Commission approvals.
The filing did not disclose the date or proposed size of the listing.
Alibaba pointed out that it had already secretly applied to list T-Head on the Hong Kong Stock Exchange on September 11th.
Meanwhile, Alibaba’s Hong Kong-listed shares traded 1% lower on Wednesday morning. The stock price has fallen about 29% since the beginning of the year.
In late September, Alibaba announced its next-generation AI chip, the Zhenwu V900, which has three times the performance of the previous generation, the Zhenwu M890, released in May.
Alibaba is one of several Chinese companies, including Huawei, developing domestically produced semiconductors to power artificial intelligence as U.S. restrictions on China’s access to chips tighten.
Short seller Calper Research claimed in May that Alibaba had access to restricted shares. Nvidia It supplies chips by indirectly financing companies in Southeast Asia. Alibaba did not respond to requests for comment.
Reports of an affair between Nvidia CEO Jensen Huang and a suspected Chinese spy with ties to one of those companies have sent the company’s stock valuation to its lowest level since late March, weighing on the overall U.S. stock market.
Amid heightened volatility in tech stocks, U.S.-based AI giant Anthropic announced in an update on Tuesday that it will offer 825 million shares in an upcoming IPO at a price range of $70 to $78 per share.
Nasdaq trading is scheduled to begin on November 19, a person with knowledge of the details told CNBC. They were granted anonymity because they were not authorized to speak publicly.
Even as investors got excited about DeepSeek’s AI breakthrough last year, Chinese tech stocks have underperformed their U.S. peers.
Baidu The company reportedly postponed the listing of its AI chip entity Kunlun New, as well as Chinese memory chip company YMTC, according to reports this month. Neither company responded to requests for comment.
China’s financial regulators have stepped up scrutiny of tech IPOs and capital flows into the sector in recent months.
—CNBC’s Fred Imbert, Ashley Caputo and Leslie Picker contributed to this report
