▲ Unitree
The Chinese authorities are seeking to shift the main funding channels for domestic tech companies from Wall Street to mainland China, the New York Times reported.
The successful Shanghai stock market debuts of memory chip maker ChangXin Memory Technologies (CXMT) and humanoid robot manufacturer Unitree illustrate China's dual ambitions: harnessing investor enthusiasm for domestic companies riding the artificial intelligence (AI) boom while reducing dependence on U.S. technology and finance, the report analyzed.
It viewed this as the result of government policies that have steered promising tech companies into the domestic financial market rather than relying on state subsidies or foreign capital.
The New York Times also highlighted an editorial published last week by the Global Times, a newspaper published by the Chinese Communist Party.
The Global Times stated that while the flow of global tech capital was "essentially a one-way street heading West," the world is "now turning its gaze from West to East."
Under President Xi Jinping, China has pursued self-reliance across various industries, including critical materials and food, in an effort to reduce the leverage other countries hold over it.
This strategy is particularly prominent in the technology sector because developing AI and advanced semiconductors requires massive amounts of capital.
The Chinese government wants this capital to be raised within China.
The explosive market response to CXMT and Unitree suggests that domestic investors are willing to provide such capital.
CXMT, which went public in late July, surged 470% on its first day of trading, with its market capitalization subsequently reaching 545 billion dollars (approx. 760 trillion KRW), surpassing Tencent to become China's most valuable listed company.
YMTC (Yangtze Memory Technologies), a major domestic competitor in China, is also preparing for an IPO.
Unitree, which went public on the 19th, also skyrocketed 460% on its first day.
These strong performances are being interpreted as a sign that China is pursuing technological and financial self-reliance simultaneously.
The Global Times argued that a strengthened domestic capital market would secure alternatives for Chinese tech companies seeking U.S. financing.
Gerard DiPippo, a director at the Washington-based research firm Eurasia Group, pointed out that in cutting-edge areas where no one knows which approach will win, subsidy strategies do not work properly and instead tend to artificially prop up companies that should be weeded out.
He added that China's domestic capital market and investors will play an increasingly important role as a better way to discipline growing tech companies.
Stating that the capital market's supporting role for Chinese startups is urgent, the Shanghai Stock Exchange released guidelines last June to streamline the listing process for Chinese AI companies competing with OpenAI, Anthropic, and Google.
The Chinese government is not only guiding companies toward the domestic market but also showing a willingness to step in and support it when the market comes under pressure.
For instance, in July, when global stock markets weakened due to concerns over excessive AI investment, two state-owned investment funds—China Reform Holdings and China Chengtong Holdings—announced a 9 billion dollar purchase of Chinese stocks to counter the downturn.
(Photo: AP, Yonhap News)
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