MetaX lock-up expiry threatens China AI chip stocks after Moore Threads rout
Synopsis
After Moore Threads lost nearly 49 billion yuan in a single day when its lock-up expired, all eyes are on MetaX Integrated Circuits as 14 million restricted shares are set free — a moment that could define investor confidence in China's entire domestic AI chip sector.
Key Takeaways
MetaX Integrated Circuits faces expiry of a lock-up period covering 14 million shares on Thursday, 18 September 2026 .
The expiry of a similar lock-up at Moore Threads last week wiped nearly 49 billion yuan (US$7.3 billion) off the company's market value in a single trading day.
Analysts warn MetaX will face 'significant selling pressure' once restricted shares are released for trading.
Both Moore Threads and MetaX debuted on Shanghai's Star Market in December 2025 , with share prices surging several hundred per cent at listing.
The two firms are part of the 'four little dragons' of China's AI chip sector, alongside Biren Technology and Enflame , all positioned as domestic alternatives to Nvidia .
MetaX Integrated Circuits faces a high-stakes moment on Thursday, 18 September 2026, as a lock-up period covering 14 million shares is set to expire, potentially triggering a wave of selling pressure across China's domestic AI chip sector. The event is being watched closely by investors after a near-identical expiry last week unleashed a market rout that erased nearly 49 billion yuan (US$7.3 billion) from rival chipmaker Moore Threads in a single trading session.
The Moore Threads Precedent
Moore Threads suffered a dramatic single-day collapse when its own restricted shares were released for trading, serving as a stark warning for what could follow at MetaX. Analysts have flagged that MetaX is likely to encounter 'significant selling pressure' once its 14 million locked-up shares enter the open market. The scale of the Moore Threads wipeout — nearly 49 billion yuan in market value destroyed in hours — has set a sobering benchmark for the sector.Why It Matters
Both Moore Threads and MetaX Integrated Circuits made blockbuster debuts on Shanghai's Star Market in December 2025, with share prices skyrocketing by several hundred per cent on the back of intense investor enthusiasm. The two companies are part of a cohort informally dubbed the 'four little dragons' of China's AI chip industry, alongside Biren Technology and Enflame. Their rise has been fuelled by China's strategic drive to cultivate homegrown alternatives to US graphics processing unit giant Nvidia, whose advanced chips remain subject to sweeping American export restrictions.The Competitive Backdrop
China's domestic AI chip firms have attracted extraordinary investor capital as geopolitical tensions continue to restrict access to cutting-edge Nvidia hardware. The Star Market, Shanghai's technology-focused exchange, has become the primary listing venue for these national champions, with valuations reflecting both genuine technological ambition and speculative fervour. The post-lock-up volatility now confronting Moore Threads and MetaX underscores the gap between narrative-driven valuations and the underlying commercial realities these companies still face.What's Next
The MetaX lock-up expiry will serve as a critical stress test for investor confidence in China's AI chip story. If selling pressure materialises at a scale comparable to the Moore Threads episode, it could trigger a broader reassessment of valuations across the entire domestic semiconductor cohort, including Biren Technology and Enflame. Market participants and policymakers alike will be monitoring whether institutional buyers step in to absorb supply — or whether the sector enters a prolonged correction that tests the durability of China's AI chip investment thesis.Point of View
A transition that remains years away commercially. The 'four little dragons' framing is powerful political branding, but it has also concentrated retail and institutional capital in companies whose revenue bases remain a fraction of their market caps. Investors watching the MetaX expiry should treat it as a leading indicator for how sustainable China's domestic semiconductor rally truly is.
NationPress
16 Sept 2026
Frequently Asked Questions
What is the MetaX Integrated Circuits lock-up expiry and why does it matter?
A lock-up period preventing early shareholders from selling their shares in MetaX Integrated Circuits is set to expire, releasing 14 million shares into the open market. This matters because a near-identical expiry at rival chipmaker Moore Threads last week triggered a sell-off that erased nearly 49 billion yuan (US$7.3 billion) in a single day, raising fears of a repeat at MetaX .
How much did Moore Threads lose when its lock-up period expired?
Moore Threads lost nearly 49 billion yuan (US$7.3 billion) in market capitalisation in a single trading session after its lock-up period expired. Analysts attributed the collapse to an avalanche of sales by shareholders who had been restricted from selling since the company's Star Market debut.
What are the 'four little dragons' of China's AI chip sector?
The 'four little dragons' is an informal label for China's four most prominent domestic AI chip companies: Moore Threads , MetaX Integrated Circuits , Biren Technology , and Enflame . All four have been positioned as homegrown alternatives to US chipmaker Nvidia , whose advanced GPUs are subject to American export restrictions targeting China .
Where are MetaX and Moore Threads listed and when did they debut?
Both MetaX Integrated Circuits and Moore Threads are listed on Shanghai's Star Market , China's technology-focused stock exchange. They made their market debuts in December 2025 , with share prices surging by several hundred per cent amid strong investor enthusiasm.
Could the MetaX sell-off affect other China AI chip stocks?
A significant sell-off at MetaX could trigger a broader reassessment of valuations across China's domestic AI chip sector, potentially affecting Biren Technology and Enflame as well. Analysts note that if institutional buyers do not absorb the released supply, the entire cohort of domestic semiconductor stocks could enter a prolonged correction.
