China’s AI stocks deliver explosive gains, but foreign investors are left out
The post China’s AI stocks deliver explosive gains, but foreign investors are left out appeared on BitcoinEthereumNews.com.
International retail investors can’t get in on the action as Chinese artificial intelligence companies rack up huge gains in their stock debuts. Complex rules are keeping most overseas individuals from buying shares in these hot offerings. MetaX Integrated Circuits, a chipmaker, saw its stock price shoot up almost 700% when it started trading in Shanghai last week. Moore Threads did even better earlier this month, with shares jumping over 400% on day one. There’s plenty of interest from global markets, but foreign retail investors hit a wall trying to access these mainland Chinese initial public offerings. Chris Zhang puts it simply. He’s executive director at China Fortune Securities Company, a Chinese financial services firm. “It’s not even possible. Unless they open up an account with a Chinese broker,” he told CNBC. The problems start right away with basic account requirements. Opening a brokerage account with a Chinese securities company means you need a Chinese bank account first. Getting that bank account usually requires proof that you live in China or a Chinese visa that hasn’t expired yet. There’s more though. Foreigners also need to already own shares in mainland-listed companies before they can enter the lottery for new stock offerings. Most foreign banks don’t have the right arrangements with Chinese brokerages to help their customers open these accounts, Zhang said. That makes the whole thing impossible for just about everyone living overseas. Only select foreigners qualify for direct A-share trading Shanghai city government guidelines lay out who can directly open brokerage accounts for A-shares—that’s what stocks listed on mainland Chinese exchanges are called. Only certain foreigners qualify. People with permanent resident status can do it. So can foreigners working in China, or those working abroad who get equity compensation at A-share listed companies. A lot of global investors use Stock…
Filed under: News - @ December 22, 2025 12:21 pm