Chinese AI Tech Stocks Returning to A-Shares: The Dilemma Between Valuation Bubbles and Regulatory Tolerance
Alina Collins
CSRC Chairman Wu Qing backed Hong Kong-listed companies listing on the mainland — Zhipu AI and MiniMax are already moving toward the STAR board. But with STAR's average P/E already at 105× and AI names carrying extreme valuations, Beijing's push to repatriate capital collides head-on with its fear of bubbles.
What door did the CSRC just open?
On June 17 at the Lujiazui Forum, CSRC Chairman Wu Qing said the regulator would support qualified Hong Kong-listed companies listing in China.
This means → the Hong Kong-to-A-share path has shifted from "virtually impossible" to "officially encouraged." Previously, only state giants like China Mobile and SMIC had made the crossing.
In plain terms = private companies used to face prohibitive hurdles moving from Hong Kong to the mainland. Now the regulator has sent an open invitation.
Who is moving first?
MiniMax (0100.HK) announced on May 31 that its board approved a preliminary plan to issue RMB-denominated shares on the Shanghai STAR board.
Zhipu AI (2513.HK) followed on June 1, with board approval to list on STAR — issuing up to 8% of its enlarged share capital, subject to regulatory review.
Both companies share one trait: they are still burning cash, making them less sensitive to profitability thresholds. This reflects a pattern — the firms with the strongest incentive to tap A-share capital are precisely those not yet profitable.
How extreme is Zhipu AI's valuation?
Since its Hong Kong IPO in January, Zhipu AI's stock has surged more than 1,500%, pushing its market cap to $125 billion.
Jefferies analysts estimate the current price implies a price-to-sales ratio above 90× on annualized 2026 revenue.
In plain terms = the market is paying $90 for every $1 of revenue Zhipu AI is projected to earn. Even by AI-sector standards, that multiple is extreme.
STAR is already expensive — what happens when more AI names arrive?
The STAR board's 609 listed companies carried an average P/E of roughly 105× as of Tuesday — already at historic highs.
Zhipu AI's Hong Kong shares fell 10% on Tuesday alone, after nearly doubling over the prior five trading days. This means → that kind of roller-coaster volatility will be imported directly into the mainland market once it lists on A-shares.
Put simply = STAR is already running hot. Bringing in Hong Kong's most volatile AI names is adding fuel to a market that is already warm.
What does Beijing want — and where is the contradiction?
Authorities are tightening cross-border equity trading, aiming to channel capital back home and foster what they call a "slow bull" market.
U.S. Treasury data show mainland Chinese and Hong Kong investors held more than $600 billion in U.S. equities as of last June — nearly double the 2020 level. That is a massive pool of potential repatriation capital.
Yet the CSI 300 is up only about 6% this year, far behind double-digit gains in the U.S. and Japan. This signals that blocking the exits alone is not enough — Beijing needs attractive listings to pull the money back. AI tech stocks are the assets it is counting on.
What is the real test for this experiment?
More AI listings would raise the tech weighting of A-share indices, making the market more appealing to global capital.
But the price is transplanting U.S.-style AI valuation froth into China's market — and Beijing has long been wary of overheating and sharp swings.
This means → the success of this tech-stock homecoming hinges on whether regulators can thread the needle between "repatriating capital" and "preventing a bubble." Get it right, and it is a slow bull. Get it wrong, and it is another boom-bust cycle.
Content is for reference only, not financial advice.