Sanctions-hit Chinese facial recognition firm DeepGlint in muted trading debut in Shanghai

Chinese artificial intelligence (AI) company DeepGlint, which once targeted a US$300 billion valuation, made its trading debut in Shanghai on Thursday, but quickly saw its share price decline amid the rout in tech stocks this week.

Shares of DeepGlint, which was added to the US government’s trade blacklist in July last year, was down 12 per cent over the past two days, heightening investor concerns about the potential of China’s AI industry. It recorded a market capitalisation of US$1 billion.

A specialist in facial recognition technology, the company is still operating at a net loss, according to Zhang Yi, chief executive at Shenzhen-based iiMedia Research. “Investors will keep a prudent attitude before the company achieves a breakthrough that can fix the “choke point” in the industry,” he said.

While China is expected to overtake the US in AI and other foundational technologies of the 21st century, being able to gain investor confidence by delivering handsome returns remains a challenge for companies like DeepGlint.