00:00Another AI-related IPO has popped in Hong Kong as the global investment appetite continues unabated.
00:07Shares in Chinese company Lygent surged after it raised more than $720 million on its debut.
00:15The Qingdao-based firm doesn't create AI models, but it does make infrastructure that AI relies on,
00:22specifically transceivers, which convert data into light signals sent through fiber-optic cables.
00:28And it's those links which are vital for AI data centers, making sure information is shared almost instantly.
00:37Well, the Hong Kong debut swelled Lygent's market value to around $4.3 billion.
00:43The company says it will spend most of the IPO money on making its fiber links even faster.
00:50Zhang Jiwei is president and chief economist at Pinpoint Asset Management.
00:54It's a very successful IPO and it's well anticipated that in the capital market,
01:03this AI-related infrastructure sector is very popular.
01:07So there's a very high expectation for this company's IPO and I think a lot of the corner investors already
01:18pushing their commitment
01:22and also retail investors oversubscribed the stock and so it performed quite well.
01:28Talk to us about the general boom we have seen this year in Chinese AI companies listing either in Shanghai
01:37or Hong Kong.
01:38Have we seen the most of it or is there plenty still to come?
01:42I think we're, this is not the end of it.
01:45I think there's still, it's a process probably it's going to go into next year and even beyond.
01:52First of all, this AI revolution, we are very bullish about, we think we are still at the early stage
02:00of this AI transition
02:03that building the infrastructure only the first stage and then after that we'll probably have more applications,
02:11more sort of spill over to the other sectors that will be coming in the future years.
02:19So these companies like infrastructure-related names, I think they are the stars at this stage,
02:29but in the coming years we'll probably have, you know, different sectors will also benefit from this AI revolution
02:36and will also show their points in the capital market.
02:42We know that China is pushing for technological AI self-sufficiency.
02:47How's that going in your view?
02:50I think it's going quite well.
02:52I think these, again, you know, still I will say at the even early stage of this multi-year process,
03:02I think the government is putting a lot of resources and time and time again,
03:07I think on very senior level policy meetings, this technology sector is becoming really on the top of the,
03:16in terms of policy priorities and all the resources from, you name it, Thailand's land, capital market,
03:26and all kind of moving in the same direction.
03:29And there's, you know, very strong consensus that the return coming from those kind of investment will be very much
03:38sustainable in the long term.
03:40So I think, I think we're at the early stage and we've seen, you know, cases like this particular company
03:44emerging,
03:47making their, their, their, you know, performance on the global scale.
03:52So, so we are pretty excited about it.
03:55So, we're pretty excited to be able to really change your number too quickly.
03:55So, let's go to our next tier.
03:55So, so let's go to our next tier.
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