DeepSeek taps CITIC Securities for Shanghai IPO

Chinese artificial intelligence startup DeepSeek has engaged CITIC Securities to prepare for an initial public offering on Shanghai's tech-focused STAR Market, according to a Reuters exclusive published Wednesday citing two people with knowledge of the matter. The Hangzhou-based company aims to begin the IPO process by the end of 2026, though the timing of the offering, the amount to be raised, and the target valuation have not yet been determined.reuters+1

The move makes DeepSeek the first of the so-called "Hangzhou Six" AI firms to explicitly pursue a domestic A-share listing. Neither DeepSeek nor CITIC Securities responded to requests for comment.longbridge+1

Capital Needs Drive the Listing Push

DeepSeek is seeking fresh capital to fund computing infrastructure, model development, and talent retention amid intensifying competition among Chinese and U.S. AI firms. The company is currently in the midst of a funding round that could value it at 500 billion yuan, or roughly $75 billion. In June, it raised approximately $7.4 billion at a post-money valuation exceeding $50 billion, with founder Liang Wenfeng personally committing 20 billion yuan while Tencent Holdings and battery maker CATL Contemporary Amperex Technology Co., Limited contributed 10 billion yuan and 5 billion yuan respectively, becoming the largest external shareholders.investinglive+2

DeepSeek generated about 475 million yuan in revenue during the first seven months of 2026 — roughly ten times its full-year 2025 revenue — while recording a net loss of about 715 million yuan over the same period, according to IBTimes Singapore. The company is also planning a major expansion of domestic computing capacity, with at least 160,000 Huawei Ascend 950DT AI accelerators earmarked for a data center in Inner Mongolia.ibtimes

A Wave of AI Listings

DeepSeek's IPO push comes amid a broader rush to public markets by AI companies on both sides of the Pacific. Chinese large language model developers Z.AI and MiniMax both listed in Hong Kong earlier this year, while Beijing-based startup Moonshot has filed confidentially for a Hong Kong IPO. In the United States, Anthropic could be valued at up to $2 trillion in its IPO, which Reuters reported is planned for mid-October, while OpenAI could seek a valuation of up to $1 trillion.investing+2

The valuation gap between Chinese and American AI firms reflects a sharp revenue disparity and underscores the challenge Chinese developers face in converting competitive technology into profit. Investor appetite for Chinese AI stocks remains strong, however — Enflame Technology's recent STAR Market IPO attracted online subscription demand exceeding 4,000 times the shares available. Whether public markets will support DeepSeek at a $75 billion valuation remains the central question as the company navigates from a private venture capital story into what could become one of China's largest technology listings.reuters+1