KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Key Takeaways
Moore Threads surged up to 502% on debut after a US$1.13 billion IPO, the second-largest onshore listing this year.
The rally underscores strong investor interest in China’s AI chip sector amid tech self-reliance efforts.
Retail subscriptions were oversubscribed 2,750 times, despite the firm still being unprofitable.
Valuation remains stretched at 123x price-to-sales, above peer averages.
The company, founded by a former Nvidia executive, rebounded after U.S. sanctions triggered restructuring.
More major Chinese semiconductor firms are preparing IPOs, suggesting a deepening onshore pipeline.
Moore Threads Technology Co, one of China’s leading artificial intelligence (AI) chipmakers, surged in its Shanghai trading debut after raising 8 billion yuan (US$1.13 billion) in the year’s second-largest onshore IPO.
The stock climbed as much as 502% from its IPO price of 114.28 yuan, marking what could be the biggest first-day jump for any US$1 billion-plus IPO since China’s 2019 reform of its listing rules, according to Bloomberg data. It is also one of the strongest debuts in an otherwise subdued Chinese equity market.
The frenzy reflects rising optimism around China’s push for tech self-sufficiency, as U.S. export controls tighten and Beijing accelerates support for domestic chipmakers. Moore Threads has benefited from a market gap left by Nvidia’s forced exit due to U.S. restrictions.
Regulators recently relaxed listing requirements for unprofitable tech firms on the Star Market, benefiting startups like Moore Threads.
“This is one of those flagship IPOs that will be remembered,” said Shao Qifeng, CIO at Ying An Asset Management. “But historically, such sensational debuts can also signal froth in parts of the market.”
Strong Demand Despite Losses
The company’s retail tranche was oversubscribed 2,750 times, making it the second most sought-after billion-dollar onshore IPO since 2022.
IPO proceeds will fund next-generation AI and graphics chip projects and strengthen working capital.
Moore Threads’ financial performance remains mixed:
Net loss: 724 million yuan in the first nine months of 2025 (down 19% from a year earlier)
Revenue: 780 million yuan (up 182% year-on-year)
Still, its valuation is steep. At the offer price, the company trades at 123 times price-to-sales, above the peer average of 111 times.
The company asked its lead sponsor to warn investors about valuation risks ahead of the debut.
Nvidia Veteran–Founded Firm Navigates U.S. Sanctions
Founded in 2020 by former Nvidia executive Zhang Jianzhong, Moore Threads initially focused on graphics chips for gaming and rendering before pivoting to AI accelerators used for large language models.
A major setback occurred in October 2023 when the U.S. Commerce Department placed the company on its entity list, limiting access to essential technology. The firm underwent job cuts and restructuring, but investor interest recovered as Beijing positioned AI chips as a national priority.
The Star 50 Index has risen more than 30% this year, with several Chinese chipmakers — including Cambricon Technologies — posting strong gains.
Pipeline of Chinese Chip IPOs Builds
Moore Threads’ strong debut could pave the way for more domestic listings. Peer MetaX Integrated Circuits starts taking subscriptions on Friday, while major memory chipmakers Yangtze Memory Technologies and ChangXin Memory Technologies are weighing IPOs that could value each company at up to 300 billion yuan.
While sentiment around new listings has improved, some fund managers warn that blockbuster IPOs like this could draw capital away from other tech names.
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