China's Momenta files for $751 million Hong Kong IPO as Baidu's Kunlunxin targets $50 billion listing

Chinese technology companies are accelerating toward Hong Kong's public markets, with two major filings disclosed in the span of 24 hours. Momenta Global, a developer of advanced driver-assistance systems backed by Toyota and Mercedes-Benz, aims to raise up to HK$5.89 billion ($751.10 million) through an initial public offering. Separately, Baidu's AI chip unit Kunlunxin is reportedly planning a listing at a target valuation of $50 billion, a leap from previous estimates, and has tied share allocations to commitments to buy its semiconductors.

Momenta's $751 million offering

Momenta is offering 19.9 million shares at HK$295.60 apiece, with allocation results expected by July 7 and trading in Class A ordinary shares to begin on July 8. Cornerstone investors may include existing backer Mercedes-Benz, BlackRock, and China's Boyu Capital. The company, founded in 2016 by former Microsoft employee Cao Xudong, who serves as CEO, reported a loss attributable of 3.46 billion yuan ($508.97 million) in 2025, widening from 3.21 billion yuan in 2024. Proceeds will go toward R&D, advancing autonomous driving capabilities, commercialising Robotaxi services, and general corporate purposes. Momenta's advanced driver-assistance systems are already used in China by Toyota, Mercedes-Benz, and Audi.

Kunlunxin's $50 billion target and chip-purchase requirement

Kunlunxin, founded as Baidu's in-house chip division in 2012 and now independently operated, is targeting a $50 billion Hong Kong IPO, The Information reported on Sunday, citing two sources. Baidu confirmed in January that Kunlunxin had confidentially filed a listing application and is also pursuing a dual listing on Shanghai's STAR Market with CICC, Citic Securities, and Huatai Securities as lead banks. In an unusual condition, prospective IPO investors were asked to buy Kunlunxin chips worth three to seven times their planned subscription, a practice that blurs the line between investor and customer and echoes "circular financing" structures recently flagged by the Bank for International Settlements.

Hong Kong's equity capital markets surge

Both offerings land in a buoyant Hong Kong market. IPOs and secondary listings of A share companies raised $21.6 billion in the first half of 2026, a 51% increase from the same period last year, according to LSEG-compiled data cited by Reuters. Broader equity capital markets activity reached nearly $44 billion, the highest level in five years, The Next Web reported. The environment is supported by Beijing's push for tech self-reliance amid rivalry with the United States, with Chinese onshore technology IPOs on track for their strongest year since 2023. Recent listings include a multibillion-dollar offering from battery maker CATL, while AI developer Zhipu and optical transceiver maker Zhongji Innolight are preparing further rounds.

H1 202514.3

H1 202621.6

H1 2025

14.3 $B

H1 2026

21.6 $B

Data from the article text

Systemic concerns around chip-tied financing

The structure of Kunlunxin's IPO has drawn attention after the BIS warned this weekend that financial arrangements in the AI investment boom carry systemic risks. The BIS flagged cases where chipmakers take stakes in AI labs that commit to buying their products, describing terms as typically poorly disclosed. Kunlunxin's request that IPO investors also become chip customers mirrors that pattern. The company has been shifting from an internal Baidu supplier to a third-party seller; external customers accounted for over 50% of revenue in 2025, and breakeven was expected that year. Its chips are used by Tencent, while TikTok owner ByteDance is considering adoption.