What happened
DeepSeek announced it has retained CITIC Securities to prepare a STAR Market IPO in Shanghai, with a targeted valuation of about $75 billion and an expected filing in late 2026 or early 2027.
According to a KraneShares analysis, DeepSeek has hired CITIC Securities as a lead underwriter for a forthcoming STAR Market IPO on the Shanghai Stock Exchange. The company is targeting a valuation close to $75 billion, which would rank it among the top five listed firms on the STAR Market based on September 28 2026 market data.
The filing follows recent governance moves, including the appointment of DeepSeek’s first chief financial officer, Yan Wentao, a step typically taken before a public offering. No official IPO date has been set, but the analysis estimates the listing could occur in the fourth quarter of 2026 or the first quarter of 2027.
KraneShares notes that its own STAR Market ETF (KSTR) does not currently hold DeepSeek shares. Inclusion in the SSE STAR 50 Index – the for KSTR – would depend on the final market capitalization after the IPO, potentially qualifying DeepSeek for fast‑track index inclusion if the $75 billion target is achieved.
Source details: kraneshares.com ↗
Why it matters
The planned listing would be the first on‑shore IPO of a pure‑play AI model developer in China, testing the STAR Market’s ability to price intangible AI IP and potentially reshaping the composition of China’s technology ETFs.
If DeepSeek successfully lists at the projected valuation, it would become the first on‑shore Chinese company whose primary asset is AI model IP rather than physical hardware, marking a shift in the STAR Market’s focus from manufacturing to intangible technology assets. This could encourage other AI‑centric firms to pursue domestic listings, diversifying the exchange’s portfolio.
The IPO would also provide a concrete market valuation for a Chinese AI model developer, offering investors a for comparing domestic AI firms such as MiniMax and Z.AI, which are currently listed in Hong Kong. A high valuation would signal confidence in the commercial viability of efficient, low‑cost AI models developed in China.
For investors, the potential inclusion of DeepSeek in the SSE STAR 50 Index could affect the composition and performance of the KraneShares China Technology & Semiconductor STAR 50 Index ETF (KSTR). A fast‑track inclusion could boost the ETF’s exposure to AI model developers, altering its risk‑return profile.
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What to watch next
Key indicators to monitor include the final IPO pricing, inclusion of DeepSeek in the SSE STAR 50 Index (and thus the KSTR ETF), and any regulatory signals affecting on‑shore AI company listings.
The exact IPO pricing and final market capitalization once DeepSeek files its prospectus.
Whether DeepSeek is added to the SSE STAR 50 Index, which would trigger its inclusion in the KSTR ETF.
Regulatory developments in China that may affect the listing of pure‑play AI companies, especially any new requirements for AI model transparency or data security.
Competitive responses from other Chinese AI model providers, such as MiniMax and Z.AI, which could influence DeepSeek’s market positioning post‑IPO.