Chaozhou Three-Circle and Jiangsu Boqian New Materials File for Hong Kong IPOs in Succession
Miles Bennett
Chaozhou Three-Circle and Jiangsu Boqian are both pushing toward Hong Kong listings, betting on what Goldman Sachs calls the largest and longest upcycle in MLCC history — AI compute build-out is turning this tiny capacitor into a supply bottleneck.
Who are these two companies, and why Hong Kong now?
Chaozhou Three-Circle Group cleared its Hong Kong listing hearing last week, sponsored by China Galaxy International; the company already trades on the Shenzhen A-share market, making this a dual listing.
Jiangsu Boqian New Materials filed its Hong Kong prospectus in the same window — also a dual listing from its existing Shanghai A-share base.
This means → two critical links of the MLCC supply chain — raw material and finished product — are entering Hong Kong's capital market in the same window.
What exactly is an MLCC, and why does it matter?
An MLCC — multilayer ceramic capacitor — is a foundational component inside smartphones, EVs, AI servers, and data centers, often called "the rice of the electronics industry" for its ubiquity.
In plain terms = almost every electronic device needs them, in huge quantities; a shortage can halt an entire production line.
Boqian sits upstream — it makes nickel powder, a core MLCC raw material. Frost & Sullivan data cited in its prospectus puts the company at 11% global share, the world's second-largest MLCC nickel-powder supplier.
Why does Goldman call this the "largest cycle ever"?
Goldman Sachs characterizes the current MLCC upcycle as the "largest and longest" in the industry's history.
The main driver: rapid expansion of AI data centers and compute clusters is sharply lifting demand for high-capacitance MLCCs.
This reflects a broader pattern — AI infrastructure spending has moved beyond chips and servers into the passive-component layer, and supply tightness is spreading up the chain.
What are they betting on by listing now?
Both companies are racing to raise capital during the supply-demand tightness window, locking in funding for capacity expansion.
This means → whether they can raise money and build capacity while the cycle is still running is the key test of this timing call.
In plain terms = as long as demand outstrips supply, the business case holds — but if fundraising or construction drags and supply catches up first, the window closes.
Content is for reference only, not financial advice.