If you’ve been following China’s markets over the past few weeks, one thing is obvious: AI- and chip-related IPOs are on fire. Two of the most jaw-dropping examples are Moore Threads and MetaX Integrated Circuits both listed in Shanghai and both delivering “hard-to-believe” gains right out of the gate.

But there’s a major twist: most international investors — especially retail — can’t directly participate in these IPOs on the mainland A-share market. For them, it’s mostly a case of watching the wave from the sidelines, or taking indirect routes with much weaker exposure.

Why are China’s AI / chip IPOs skyrocketing on day one?

Tailwind #1: AI chip “domestic substitution” is a national priority

The core story is tech self-reliance, especially amid U.S.–China restrictions. That creates expectations that domestic GPU/AI chip makers will receive preferential access to capital, contracts, and policy support. Multiple reports frame this as part of China’s push to reduce reliance on Nvidia/AMD.

Tailwind #2: Local risk appetite + market mechanics

• Moore Threads surged over 400% on its first trading day.

• MetaX jumped roughly 700% on debut (and even higher intraday in some quotes).

A key driver is IPO oversubscription: retail allocations are tiny relative to demand, which fuels intense FOMO. Once trading opens, speculative buying can push prices sharply higher.

Tailwind #3: “Expectation-based valuation,” not current profits

A recurring theme across coverage is lofty valuations despite ongoing losses — a classic hallmark of early-stage “strategic tech” listings. GPU R&D and scaling are extremely expensive, especially when domestic firms still trail the global leaders.

Why is it so hard for foreign investors (especially retail) to buy mainland IPOs?

Barrier #1: Mainland IPO access usually requires an onshore brokerage account

To subscribe to many A-share IPOs (often via a lottery-style allocation system), investors typically need an onshore securities account tied into domestic identity and banking infrastructure. That’s where overseas retail investors hit the first wall.

Barrier #2: Only a narrow set of foreign individuals can open A-share accounts directly

Official guidance referenced by local authorities indicates that only specific categories of foreigners can directly open A-share brokerage accounts for example: permanent residents, foreigners working in China, or certain overseas employees with equity incentive plans in A-share listed companies.

For a typical overseas retail investor with no China residency or employment link, this path is effectively closed.

Barrier #3: Stock Connect is convenient for buying A-shares but not for IPOs

For global investors, Stock Connect (via Hong Kong) is often the easiest way to access A-shares without onshore accounts. But it does not solve the IPO problem:

1. Stock Connect primarily enables secondary-market trading, not IPO subscriptions.

2. Newly listed stocks are often not eligible immediately inclusion depends on criteria like liquidity, market cap, and trading history, which typically require weeks or months of post-listing data.

Risk perspective: The wave is real but it’s not for everyone

The excitement around China’s AI-chip IPOs reflects a huge collective bet: successful domestic substitution + surging AI demand + policy-driven capital support.

But risks are real:

• The technology gap versus Nvidia/AMD remains meaningful, and supply-chain constraints still matter.

• “Parabolic” day-one moves can mean mean reversion risk once the initial frenzy fades.

• For foreign investors, risks also include market-access constraints (eligibility rules, STAR restrictions, Stock Connect delays), not just company fundamentals.

The party is happening but foreigners often watch through the glass

China’s AI and chip IPO boom is undeniable, and the Moore Threads/MetaX debuts show how intense domestic demand can be. But the structure of A-shares plus account requirements and Stock Connect eligibility delays means overseas retail investors are unlikely to capture the “best part” of the trade: IPO allocations and the explosive first-day pop.

To participate legally, most foreigners end up choosing: secondary-market access later, fund/ETF exposure, or offshore listings.

Source: CNBC