China’s high-powered market for initial public offerings is showing signs that its breakneck pace could be difficult to sustain. Fueled by enthusiasm for all things artificial intelligence, companies are raising money at the fastest rate since 2023, with volumes at levels just before cooling measures back then ushered in a multiyear lull. Recent high-profile deals have struggled to hold on to initial gains, while a robust IPO pipeline has reanimated liquidity concerns. And some highly anticipated deals may be taking longer to come to market than previously thought.

Unitree Robotics G1 humanoid robots performed at the exhibition of the World Robot Conference in Beijing. Photographer: Qilai Shen/Bloomberg. The AI-driven IPO surge mirrors the 2023 frenzy that preceded regulatory tightening and a prolonged market slowdown. Investors are now watching for signs of overheating as deal flow accelerates.

Market analysts warn that sustaining current IPO volumes may strain underwriting capacity and post-listing performance. The World Robot Conference in Beijing highlighted growing AI-linked investment interest, but also underscored risks of speculative momentum. Regulators may intervene if pace threatens stability, echoing actions taken after the 2023 peak.