Honor completes IPO step for China A-share listing

Honor, a Chinese smartphone maker spun off from Huawei in 2020, has filed documents with securities regulators to prepare for a domestic stock market debut.

The company has completed its IPO counseling recordation, a necessary step for firms seeking to list A shares on mainland exchanges.

It transitioned into a joint-stock company in December 2024, meeting regulatory requirements for public listings in China.

The planned IPO comes as China’s A-share market sees a recovery, with increased activity in Q2 2025.

Honor is currently the fourth-largest smartphone maker in China, based on a 2024 report by Canalys.

If listed, it will join Xiaomi and ZTE among the few Chinese smartphone brands traded publicly. Huawei remains privately held.

🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ Honor’s IPO represents a strategic evolution following Huawei separation

Honor’s journey to the stock market highlights how Chinese tech companies are adapting to geopolitical challenges through corporate restructuring.

The company was originally established as Huawei’s sub-brand to target mid-tier consumers while Huawei maintained its premium segment, a strategy that helped Huawei surpass Apple to become the second-largest global smartphone manufacturer in 2018 1.

When Honor was spun off in 2020 with a substantial registered capital of 3.24 billion yuan (US$4.50 billion), it came during a period when Huawei faced severe U.S. restrictions that had revoked its Android license and limited access to critical components 2.

The separation allowed Honor to continue operations independently of these restrictions, and its current position as China’s fourth-largest smartphone maker demonstrates the effectiveness of this corporate strategy.

Honor’s diverse shareholder base now includes state-owned entities and major telecommunications providers like China Mobile and China Telecom, showing how the company has built strategic alliances across China’s tech ecosystem since its independence.

2️⃣ Chinese smartphone market maturity drives financing needs

Honor’s IPO comes amid significant shifts in the Chinese smartphone landscape, where increased competition and market saturation are pushing manufacturers to seek capital for innovation and expansion.