June 30 (Reuters) - China's Nexchip Semiconductor

seeks to raise up to HK$6.98 billion

($890.26 million) in a Hong Kong share sale, an exchange filing

showed on Tuesday.

The chip firm is offering 216.2 million shares at maximum

HK$32.30 each and expects dealing of H shares to begin on July

10, the filing showed.

Nexchip's raising follows a slew of Chinese technology firms

seeking to raise funds in Hong Kong's red-hot capital markets,

with Apple supplier Luxshare Precision Industry

revealing on the day an up to $3.10 billion share sale.

AI-linked firms seek to catch the action, with Baidu's ( BIDU )

Kunlunxin planning a Hong Kong IPO with a $50 billion

target valuation, the Information reported on Sunday.

Nexchip aims to use about 53.6% of the proceeds for research

and development and optimization of the 22 nm technology

platform, and expects some of the proceeds for production

initiatives based on AI technology.

The company, however, sees lower net profit for 2026

compared to a year ago, mainly due to anticipated depreciation

costs from its new production facility, the filing showed.

Cornerstone investors, or big investors that commit to buy

shares before listing, include Chinese automotive firm Chery

Automobile's ( CRYAF ) unit, according to the prospectus.

($1 = 7.8404 Hong Kong dollars)