Chinese AI Server Giant xFusion Prepares for IPO with Citic Securities
China’s top AI server manufacturer, xFusion, has taken the first formal step toward a public listing by appointing Citic Securities as its adviser for an initial public offering (IPO), according to a regulatory filing released this week.
xFusion Begins IPO “Tutoring” Phase
The Henan-based company, a spin-off from Huawei, signed an agreement with Citic Securities on December 31 to commence its IPO “tutoring” process. This stage, which typically lasts several months, is designed to familiarise company executives with listing regulations and compliance requirements. The process will run from January through April or May, according to details published on the China Securities Regulatory Commission (CSRC) website.
The move positions xFusion among a growing number of Chinese technology firms looking to tap into investor enthusiasm for artificial intelligence.
Strong Market Momentum for AI Firms
In China, xFusion ranks as the leading AI server provider, reporting sales of more than 40 billion yuan ($5.72 billion) in 2024, according to information on the Henan provincial government website. The company’s products and services support clients across telecommunications, finance, transportation and internet industries, and it operates in over 100 countries and regions.
Authorities in Beijing have been accelerating listings in the AI and semiconductor sectors to strengthen domestic capabilities and reduce reliance on U.S. technology amid ongoing export restrictions. Recent market debuts of major AI chipmakers reflect the sector’s strong performance.
Shanghai Biren Technology surged 76% on its first trading day in Hong Kong on Friday, while Moore Threads Technology and MetaX Integrated Circuits soared 400% and 700% respectively after debuting in Shanghai last month. The rally helped propel the CSI AI Index up 67% in 2025, underscoring investor appetite for AI-related stocks.
xFusion’s Growth and Global Reach
xFusion, valued at nearly $9 billion in 2023 by consultancy Greatwall Strategy Consultants, was established in 2021 following its separation from U.S.-blacklisted Huawei. Its shareholders include China Telecom Group Investment and China Mobile Capital Holding, according to local media reports.
By moving ahead with an IPO, xFusion is expected to capitalise on strong market sentiment and government backing for domestic AI and computing infrastructure. Its collaboration with Citic Securities suggests that the company could list later this year, pending regulatory approvals.
with inputs from Reuters