China’s leading artificial intelligence server supplier xFusion has taken an early procedural step toward a potential stock-market debut, hiring Citic Securities to run a pre-IPO “tutoring” program for its executives, according to a regulatory disclosure. The Henan-based company signed the agreement on Dec. 31, 2025, and the tutoring period is scheduled to run from January to April or May, a filing posted on the China Securities Regulatory Commission (CSRC) website showed.
In China’s domestic listing system, IPO tutoring is commonly used to help companies align governance, internal controls, and disclosure practices with exchange and regulator requirements. The engagement does not specify an exchange venue, an offering size, or a timetable for submitting a prospectus, and it does not guarantee that xFusion will proceed with an IPO. Still, it places the company on a compliance track at a moment when investor appetite for AI-related issuers has been evident in recent flotations. In China, regulators publish these tutoring engagements, giving markets an early signal of which private companies are moving closer to the formal listing queue.
Market Position and Roots in Huawei’s Restructuring
A government website cited by Reuters said xFusion recorded sales exceeding 40 billion yuan (about $5.72 billion) in 2024, making it the top AI server provider in China by that measure. On its website, xFusion describes itself as a global provider of computing infrastructure and services, with a presence in more than 100 countries and regions and customers across industries including telecom, finance, transportation, and internet services. The company’s positioning ties it to the expanding buildout of data-center capacity needed to train and run large-scale AI models, a segment attracting heavy investment across China’s technology sector.
Reuters reported that xFusion was spun off from Huawei in 2021, after Huawei was placed under U.S. restrictions that limited its access to certain technologies and high-end supply chains. Reuters also cited a valuation estimate of nearly $9 billion in 2023 from consultancy Greatwall Strategy Consultants. Local media have reported that shareholders include China Telecom Group Investment and China Mobile Capital Holding, reflecting participation by state-linked investors in building domestic computing capacity.
AI IPO Momentum and Surging Sector Benchmarks
xFusion’s IPO preparations come as China accelerates listings across the AI and semiconductor sectors. Reuters reported that AI chipmakers including Shanghai Biren Technology, Moore Threads Technology, and MetaX Integrated Circuits have listed in Shanghai or Hong Kong in recent weeks, with additional offerings expected.
Recent debut performance has reinforced the sector’s momentum. Reuters said Biren rose 76% on its first day of trading in Hong Kong, while Moore Threads and MetaX surged 400% and 700%, respectively, when they debuted in Shanghai. In the secondary market, Reuters reported that demand for AI-related stocks helped lift the CSI AI Index by 67% in 2025.
The pipeline also includes AI units within larger technology groups. In a separate Reuters report, Baidu’s AI chip arm Kunlunxin filed confidentially for a listing in Hong Kong, part of a broader fundraising push around domestic AI hardware.
Policy Backdrop and Supply-Chain Tensions
Reuters linked the faster IPO pace to policy goals, saying Chinese authorities have been fast-tracking listings in AI and chipmaking to strengthen domestic alternatives to advanced U.S. technology in response to export curbs on high-tech goods. For companies in the computing stack, that environment can support demand for locally sourced infrastructure, while also sharpening competition to deliver performance gains with constrained access to certain foreign components.
The broader tensions around AI hardware sourcing remain fluid. On Jan. 7, 2026, Reuters reported that Beijing asked some Chinese technology firms to halt orders for Nvidia’s H200 chips and was considering measures that could steer purchases toward domestic AI chips, citing a report from The Information. While that development did not involve xFusion directly, it illustrates the strategic pressures shaping investment and procurement decisions across China’s AI ecosystem.
For xFusion, the Citic engagement is an initial step that could lead to a formal exchange application if the company decides to move ahead. Additional details on timing, venue, and structure would typically appear in later regulatory documents as the tutoring process advances.
