Chinese chipmaker ENFLAME TECHNOLOGY (688801.SH) debuted on Shanghai's STAR Market this morning (11th), opening at RMB410 per share, 188.37% higher than its IPO price of RMB142.18 per share. The company is developing domestic products that could replace offerings from US competitors such as NVIDIA Corporation (NVDA.US).
ENFLAME TECHNOLOGY's IPO saw strong demand, with the retail tranche oversubscribed by more than 6,000 times, prompting the company to reallocate additional shares to retail investors.
Backed by TENCENT (00700.HK), ENFLAME TECHNOLOGY is regarded as one of China's "Four Little Dragons" of AI chips and the last among the group to go public.
The other three companies also posted surges after listing and have continued trading above their IPO prices. METAX (688802.SH) skyrocketed nearly 700% on its first trading day after listing in December 2025; MOORE THREADS (688795.SH) escalated more than 400% on debut; while BIREN TECH (06082.HK) rallied 76% during its IPO in January this year.
Investors are betting that domestic AI chipmakers can replace NVIDIA in the China market. According to IDC data cited in ENFLAME TECHNOLOGY's prospectus and translated by CNBC, international chipmakers led by NVIDIA accounted for nearly 60% of China's AI accelerator market in 2025.
China's semiconductor industry buildout is accelerating. In an August report, Goldman Sachs said growth in China's foundation models and AI applications is driving development in AI chips, foundries, memory and advanced packaging.
Analysts expected China's semiconductor capex to reach USD82 billion by 2030, driven mainly by memory and advanced process capacity expansion under the generative AI trend.
Domestic startup models such as Moonshot AI's Kimi K3 narrowed the gap with leading US models, while global adoption of Chinese AI systems continues to increase. Rival Z.AI (02513.HK) said its GLM-5.3-Flash model runs entirely on China-made chips. Analysts noted that the company may be using a combination of chips from Huawei, ENFLAME TECHNOLOGY and other domestic suppliers.
BABA-W (09988.HK) is also developing its own AI chips and supporting software while optimizing systems to support major Chinese models.
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AASTOCKS Financial News
Website: www.aastocks.com
| SG Top Picks |
| Stock & Type |
Code |
Strike(Call Level) |
Last |
Effective Gearing |
| TENCT (C) |
29978 |
542 (-) |
0.039 |
12.6 X |
| TENCT (C) |
16371 |
535 (-) |
0.062 |
8.0 X |
| TENCT (C) |
14720 |
525 (-) |
0.044 |
9.8 X |
| TENCT (C) |
13462 |
510 (-) |
0.033 |
7.6 X |
| TENCT (P) |
13318 |
447.5 (-) |
0.099 |
4.3 X |
| TENCT (P) |
28953 |
390 (-) |
0.066 |
13.0 X |
| TENCT (Bull) |
67282 |
407 (410) |
0.052 |
16.5 X |
| TENCT (Bull) |
53947 |
397 (400) |
0.073 |
11.8 X |
| TENCT (Bear) |
54066 |
463 (460) |
0.056 |
15.4 X |
| TENCT (Bear) |
54561 |
453 (450) |
0.039 |
22.1 X |
| Z.AI (C) |
15964 |
1,488 (-) |
0.063 |
2.0 X |
| Z.AI (Bull) |
55628 |
690 (750) |
0.023 |
6.8 X |
| ALIBA (C) |
28103 |
135.6 (-) |
0.040 |
6.7 X |
| ALIBA (C) |
13814 |
123 (-) |
0.047 |
7.3 X |
| ALIBA (C) |
15764 |
119.88 (-) |
0.077 |
5.7 X |
| ALIBA (C) |
14258 |
107.8 (-) |
0.107 |
5.4 X |
| ALIBA (P) |
15289 |
96 (-) |
0.079 |
4.9 X |
| ALIBA (Bull) |
57509 |
100 (101.5) |
0.037 |
14.4 X |
| ALIBA (Bull) |
57508 |
97 (98.5) |
0.052 |
10.2 X |
| ALIBA (Bear) |
53200 |
119.5 (118) |
0.056 |
9.5 X |
| ALIBA (Bear) |
54830 |
113.5 (112) |
0.032 |
16.6 X |
| Nvidia (C) |
11185 |
275 (-) |
0.085 |
8.4 X |
| Nvidia (P) |
11090 |
168 (-) |
0.062 |
6.7 X |
