Chinese language entrepreneur Liang Wenfeng, the founder and CEO of DeepSeek, seems to have made an enormous rating from the preliminary public providing of chip designer Moore Threads Expertise, whose shares surged greater than fivefold in its buying and selling debut in Shanghai.
Excessive-Flyer Quantitative Fund, a hedge fund co-founded by Liang, had subscribed to a complete of 82,244 shares of Moore Threads, at 114.28 yuan per share, by way of two entities: Zhejiang Excessive-Flyer Asset Administration and Ningbo Excessive-Flyer Quant Funding Administration Partnership. That made Excessive-Flyer one of many inventory’s prime institutional traders, based on the subscription outcomes reported by the Beijing-based agency, generally known as China’s reply to Nvidia.
Over the previous two buying and selling days, Moore Threads shares rose greater than 5 occasions, leading to an almost 40 million yuan (US$5.6 million) revenue for Excessive-Flyer, based on the Submit’s calculation based mostly on the inventory’s 594.25 yuan closing value on Monday.
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The corporate raised about 8 billion yuan in its IPO, which was the mainland’s second-largest itemizing this 12 months.
Investor curiosity in Moore Threads underscores China’s push for know-how self-sufficiency, which types a part of the nation’s fifteenth five-year plan by way of 2030.
The corporate had a fast path to the capital market, getting the inexperienced mild from the China Securities Regulatory Fee in October, a mere 4 months after its software, in contrast with the common processing time of about 470 days for final 12 months’s candidates on the Shanghai Inventory Alternate Science and Expertise Innovation Board, often known as the Star Market.
Moore Threads’ prospectus confirmed that within the first half of this 12 months, income reached about 70 million yuan, which already exceeded its complete gross sales for the earlier 12 months, although the corporate stays unprofitable. The chip designer mentioned it anticipated to realize consolidated profitability as early as 2027.
Moore Threads Expertise founder James Zhang Jianzhong at a product launch in December 2023. Photograph: Handout alt=Moore Threads Expertise founder James Zhang Jianzhong at a product launch in December 2023. Photograph: Handout>
Underneath the Star Market’s subscription mechanism, a portion of a list firm’s shares are allotted by way of negotiation to firms or establishments which have strategic synergies with the agency.
Certified institutional traders obtain proportionate allocations, whereas retail traders take part by way of a lottery-style system. Institutional traders are divided into Class A and Class B. The previous consists of mutual funds, the nationwide social safety fund, pension funds and insurers, whereas quantitative funds fall into Class B.
Liang earlier mentioned that DeepSeek was in no rush to get new traders, partly due to adequate funding from Excessive-Flyer, one of many largest quantum buying and selling funds in China’s onshore market. DeepSeek was beforehand the unreal intelligence lab underneath Excessive-Flyer.
DeepSeek’s technique to eschew exterior traders has helped it preserve a low profile, whereas sharpening its deal with cost-efficient AI mannequin growth. The corporate has additionally been working with Chinese language tech {hardware} firms, together with graphics processing unit builders like Moore Threads, to determine a self-sufficient AI ecosystem in China.
Final week, DeepSeek unveiled its strongest mannequin variant, DeepSeek-V3.2-Speciale, which is claimed to match Google DeepMind’s new Gemini 3 Professional mannequin in sure duties.
This text initially appeared within the South China Morning Submit (SCMP), probably the most authoritative voice reporting on China and Asia for greater than a century. For extra SCMP tales, please discover the SCMP app or go to the SCMP’s Fb and Twitter pages. Copyright © 2025 South China Morning Submit Publishers Ltd. All rights reserved.
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