Zhongji Innolight rises after Hong Kong listing approval

Zhongji Innolight shares rose as much as 8% on Monday after the Chinese optical transceiver maker received approval for a Hong Kong listing that could be worth up to $8 billion. The stock later gave back part of the advance and was last trading 4.7% higher, according to CNBC.

The potential transaction would rank among Hong Kong’s largest listings in years and is expected to surpass Luxshare Precision’s $3.1 billion share sale on July 6 as the city’s biggest listing of 2026, according to LSEG data cited by CNBC.

Bloomberg reported that Zhongji Innolight has begun testing demand from investors, citing people familiar with the matter. The report said the final size and timing of the deal could still change while discussions continue.

Zhongji Innolight did not immediately respond to CNBC’s request for comment.

Investor demand test follows approval

A Hong Kong listing gives a company access to international and regional investors through the city’s equity market. After regulatory approval, companies and their advisers typically assess demand from institutional investors before finalising the offering size, valuation range and timetable.

For Zhongji Innolight, the prospective deal comes as investors continue to scrutinise suppliers linked to data centres and artificial intelligence infrastructure. The company makes optical transceivers, components used to transmit data through fibre-optic networks, a segment tied to the expansion of high-speed computing and cloud infrastructure.

CNBC reported that Hong Kong is seeing a wave of listings by Chinese companies connected to the artificial intelligence supply chain. The renewed activity follows a period in which the city’s market has sought to regain momentum in initial public offerings.

Hong Kong IPO market strengthens

Hong Kong recorded HK$209.9 billion raised across 85 new listings in the first half, its strongest first-half performance in five years, according to a KPMG report cited by CNBC.

KPMG said the market has “a record-breaking pipeline of over 500 active IPO applicants,” including confidential filings. The firm also said technology companies are expected to remain among the main drivers of growth in Hong Kong’s IPO market.

The potential Zhongji Innolight share sale would add to a series of large mainland Chinese listings in the city. Large offerings can broaden market liquidity and provide a benchmark for investor appetite, particularly when companies operate in sectors associated with artificial intelligence infrastructure and advanced manufacturing.

Details of the Zhongji Innolight transaction have not been finalised, according to Bloomberg’s report. Until the company confirms the terms, the expected proceeds, timing and structure remain subject to change.

This story draws on original reporting from CNBC.