Key takeaways XFusion, China’s leading AI server provider with $5.72 billion in 2024 sales, has hired Citic Securities to prepare for an initial public offering. The Huawei spin-off signed an agreemen...
The Henan province-based company, which was spun off from U.S.-blacklisted Huawei in 2021, signed an agreement with Citic on December 31 for the IPO "tutoring" process, which will run from January through April or May, according to documents posted on the China Securities Regulatory Commission website.
XFusion has established itself as China's dominant AI server provider, recording sales exceeding 40 billion yuan ($5.72 billion) in 2024, according to the Henan government website.
The company was valued at nearly $9 billion in 2023 by consultancy Greatwall Strategy Consultants.
The company describes itself as a leading global provider of computing infrastructure and services, with a presence in over 100 countries and regions.
Its customer base spans industries including telecommunications, finance, transportation, and internet services, according to its website.
XFusion's shareholders include major state-owned entities China Telecom Group Investment and China Mobile Capital Holding, local media reports indicate.
The company was formed when Huawei transferred its x86 server business assets to Henan Super Fusion Energy Technology Co., a subsidiary of a provincial state-owned enterprise, after U.S. sanctions blocked Huawei's access to Intel server chips.
Chinese authorities have been accelerating approvals for IPOs in the AI and chipmaking sectors as part of a broader push to strengthen domestic alternatives to advanced U.S. technology.
This policy shift comes in direct response to U.S. export controls that have restricted Chinese companies' access to cutting-edge semiconductors and other critical technologies.
The xFusion listing follows a surge of successful AI-related IPOs in Chinese markets. Shanghai Biren Technology, an AI chip designer, saw its shares surge 76% in its Hong Kong debut on January 2, becoming the first listing of 2026.
The company raised $717 million with its retail portion oversubscribed more than 2,300 times, exchange filings showed.
Chinese internet search giant Baidu also announced on January 2 that its AI chip unit Kunlunxin had confidentially submitted a listing application to the Hong Kong Stock Exchange.
The strong market reception for Chinese AI and chip companies reflects growing investor confidence in the sector.
In December 2025, chipmakers Moore Threads and MetaX Integrated Circuits debuted on Shanghai's STAR Market with gains of 425% and 693%, respectively.
"Chinese AI startups are going public faster than U.S. giants thanks to supportive domestic policy, clear paths to revenues from enterprise customers, and most importantly, a valuation small enough for the current IPO market," Winston Ma, an adjunct professor at NYU School of Law and former head of North America for China Investment Corporation, told Reuters.
Hong Kong raised $36.5 billion from 114 new listings in 2025, the city's highest total since 2021 and more than triple the previous year, according to LSEG data.
AI startups MiniMax Group and Zhipu AI are scheduled to debut on January 8, adding to the momentum in Chinese AI listings.
The IPO tutoring process, required by Chinese regulators, involves training company executives in the detailed requirements and procedures for going public.
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