StepFun Restructures for Planned Hong Kong IPO

Chinese AI startup StepFun is dismantling its offshore corporate structure to prepare for a Hong Kong initial public offering, reports Reuters. The move follows new guidance from China's securities regulator requiring some so-called red-chip companies—registered overseas but operating primarily in China—to unwind such arrangements.

Shanghai-based StepFun, which develops general-purpose foundation models, previously operated through a Cayman Islands structure. Two sources familiar with the matter said the company decided to move to an onshore structure as it is heavily backed by state-owned capital. Investors include funds linked to the Shanghai municipal and district governments, as well as Qiming Venture Partners and Tencent Holdings.

Founded in April 2023 by former Microsoft executive Jiang Daxin, StepFun is known for its Step 3.5 Flash model, one of the top-used AI models on the OpenClaw platform. The company has partnerships with OPPO and Geely to integrate its models into mobile and automotive systems. In February, StepFun hired Megvii Technology founder Yin Qi as president to strengthen its management team.

According to Chinese publication Caijing, StepFun aims to raise between 2 billion and 3 billion yuan ($293–$440 million) in a pre-IPO funding round at a valuation of up to $6 billion, with plans to file for a Hong Kong listing by the end of June at a target valuation of $10 billion.