Wall Street banks fund U.S. AI surge while underwriting Chinese high-tech listings

U.S. investment banks have continued to support both the domestic AI boom and Chinese competitors by underwriting a slate of high-tech equity offerings in 2026. According to LSEG data, Goldman Sachs, Morgan Stanley, Citigroup and JPMorgan served as bookrunners on 19 Chinese deals worth $17.2 billion, about a third of all issuances in the sector. Notable transactions included a $6.8 billion Hong Kong listing for Zhongji Innolight, an optical-component supplier flagged by the Pentagon, and a $2.6 billion share sale for Victory Giant Technology, which makes printed circuit boards for AI servers.

Treasury’s Outbound Investment Security Program restricts certain U.S. investments in Chinese semiconductor and AI firms but exempts underwriting services that do not involve direct equity purchases, allowing banks to remain active. Past congressional scrutiny of similar activities has not halted the flow of capital, and Chinese investors are also increasing stakes in U.S. semiconductor companies.