China’s leading artificial intelligence server manufacturer xFusion has begun preparations for a potential stock market listing by appointing Citic Securities as its investment banking adviser, according to regulatory disclosures.
The Henan-based company signed an agreement with Citic Securities on December 31 to begin the IPO tutoring process, a mandatory preparatory phase in China that involves training senior management on compliance, governance, and disclosure requirements. The tutoring period is scheduled to run from January through April or May, as per a filing published on the website of the China Securities Regulatory Commission.
The move positions xFusion among a growing list of Chinese technology firms seeking to tap strong investor appetite for artificial intelligence-related assets. According to data published on the Henan provincial government website, xFusion recorded sales of more than 40 billion yuan, or about $5.7 billion, in 2024, making it the country’s largest AI server provider by revenue.
Chinese regulators have accelerated IPO approvals for companies operating in strategic sectors such as AI and semiconductors, as Beijing seeks to strengthen domestic capabilities amid tightening US restrictions on advanced technology exports.
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Several AI chipmakers have already listed in recent weeks. Shanghai Biren Technology made its debut in Hong Kong, while Moore Threads Technology and MetaX Integrated Circuits listed in Shanghai. Biren shares surged 76 percent on their first trading day, while Moore Threads and MetaX saw gains of around 400 percent and 700 percent respectively following their listings.
Investor enthusiasm has pushed the CSI AI Index up 67 percent so far in 2025, highlighting the strong momentum behind China’s AI and computing infrastructure ecosystem.
On its website, xFusion describes itself as a global provider of computing infrastructure and services, with operations spanning more than 100 countries and clients across sectors including telecommunications, finance, transportation, and internet services. The company was valued at nearly $9 billion in 2023, according to consultancy Greatwall Strategy Consultants.
xFusion was spun off from Huawei in 2021 following US sanctions on the telecom equipment giant. Its shareholders reportedly include China Telecom Group Investment and China Mobile Capital Holding, underscoring strong state-linked backing as it prepares for a potential public listing.
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