Eager capital prompts IPO plans for more Chinese makers of brain-computer interfaces

Chinese companies involved in brain-computer interfaces (BCIs) are increasingly eyeing initial public offerings (IPOs) on domestic markets, capitalizing on the sector's newfound popularity with private investors. Shanghai-based Arfysica Innovation, which focuses on products for central nervous system injuries and cognitive disorders, has recently registered for IPO coaching in preparation for a listing on the Shanghai Stock Exchange's Nasdaq-style Star Market.

The company, led by founder Wang Wei, secured an undisclosed amount of financing in a February round and previously raised 160 million yuan from the National SME Development Fund in January. Another IPO candidate, Neuracle Medical Technology, has also secured a coaching agreement with Citic Securities to list on the Star Market.

The company achieved regulatory approval for an implantable BCI system aimed at helping spinal cord injury patients regain hand movement, having raised 72 million yuan across five financing rounds. BrainCo, one of Hangzhou's "six little dragons" – a cluster of tech firms with global recognition in AI, robotics, and other cutting-edge fields – is in the process of filing for a Hong Kong IPO.

The company is working with China International Capital Corp and UBS Group on the share sale. These IPO hopefuls showcase higher innovation levels, stronger capital backing, and increased R&D spending compared to their predecessors, according to Morgan Stanley. Analyst Huang Chiyao predicts the market is still in the early stages of a multi-year IPO upcycle, with 72.6% of this year's IPO firms having domestic leadership in innovation, despite many still lagging behind global frontrunners.

Between June last year and mid-July of 2026, a total of 106 companies listed on the Star Market, raising about 281 billion yuan.