Hisense Group Holdings’ optical communications subsidiary, Ligent Technologies, made a steady debut on the Hong Kong stock exchange, raising HK$5.6 billion in its initial public offering (IPO) and signaling continued interest from mainland Chinese companies in leveraging overseas capital markets for technology expansion.

Shares of Ligent, which manufactures fibre-optic communications equipment including optical transceivers, chips, and network terminals used in data centers, cloud computing, and telecommunications, opened sharply higher, gaining as much as 19.2 percent before closing with a 4.6 percent increase at HK$34.48. The IPO valued Ligent at over HK$35 billion. Following the offering, Hisense retains a 40.1 percent stake in the Qingdao-based company.

This listing is part of a broader trend of Chinese conglomerates spinning off mature or specialized business units to fund growth and innovation, particularly in high-tech sectors. Hong Kong’s stock exchange has recently signaled support for such moves by proposing regulatory changes aimed at simplifying spin-off requirements, including shortening the post-listing waiting period from three years to one, according to a consultation document published on Monday.

Several major mainland firms have announced plans to pursue Hong Kong listings through spin-offs. These include Fosun International, which is seeking to list holiday resort operator Club Med, and Xinyi Glass, which aims to list its automobile glass division. Other companies that unveiled spin-off plans this year include China Travel International Investment Hong Kong, GenScript Biotech, and Sunny Optical Technology.

Industry experts view these developments as beneficial for new and high-technology enterprises that require substantial capital to fuel research, development, and international expansion. Andrew Lam, managing director at advisory firm BDO, noted that such spin-offs allow companies to rapidly list established businesses and use the proceeds for overseas acquisitions.

Spin-offs have become a significant driver of initial public offerings in Hong Kong in recent years. Last September, Zijin Mining Group’s spin-off of Zijin Gold International raised HK$25 billion, marking the second-largest listing in the city for 2025.

At Ligent’s listing ceremony, Hisense Group CEO and Ligent chairman Yu Zhitao highlighted the potential offered by the growing artificial intelligence economy. He emphasized that the Hong Kong listing would serve as a platform to enhance Ligent's global research and development, manufacturing, and delivery capabilities, positioning the company strategically within the expanding AI computing infrastructure.

Hisense Group also controls other listed entities, including Shanghai-listed Hisense Visual Technology and dual-listed Hisense Home Appliances Group, signaling its broad participation in diverse sectors.