America’s top investment banks are financing the AI buildout at home while also helping raise capital for Chinese firms in strategically sensitive sectors, according to data and filings cited by Reuters and other public documents referenced in the source text.
Billions raised for Chinese AI and chip firms
Goldman Sachs, Morgan Stanley, Citigroup and JPMorgan acted as bookrunners on 19 Chinese high‑tech equity deals worth $17.2 billion in 2026—nearly 30% of the sector’s total issuance—per LSEG data reported by Reuters.
Goldman Sachs, Morgan Stanley and Citigroup served as joint global coordinators for Chinese optical component maker Zhongji Innolight’s roughly $6.8 billion Hong Kong share sale in 2026, according to Reuters. The Department of Defense added Zhongji to its list of Chinese military companies in June of that year, the source text states. Zhongji, which makes optical transceivers used inside AI data centers, said 61.7% of its first‑quarter revenue came from the United States and that the Pentagon designation had not affected its orders or operations, per the source text.
Reuters also reported that Morgan Stanley and Goldman worked on Hong Kong offerings for Chinese AI developer MiniMax and semiconductor companies Montage Technology and Shanghai Iluvatar CoreX Semiconductor.
J.P. Morgan Securities (Far East) Limited identified itself as a joint sponsor of Victory Giant Technology’s Hong Kong global offering in an April filing with the Hong Kong Stock Exchange. Victory Giant, which makes printed circuit boards used in AI servers, raised roughly $2.6 billion in the sale, according to Reuters.
What Treasury’s rules allow
The Treasury Department’s Outbound Investment Security Program targets certain U.S. investments involving China, Hong Kong and Macau in semiconductors and microelectronics, quantum information technologies and artificial intelligence. The rules prohibit some transactions and require U.S. persons to notify Treasury about others, but they do not bar all Wall Street activity with covered companies, according to the source text.
Treasury guidance states an American investment bank underwriting an initial public offering for a covered Chinese company generally is not conducting a covered transaction unless the bank acquires a covered equity interest through the underwriting. Treasury also exempts qualifying investments in publicly traded securities, and in December 2025 clarified that securities acquired by a U.S. financial institution while underwriting certain follow‑on offerings can fall under that publicly traded securities exception, per the source text.
Financing America’s AI surge
U.S. technology companies have increasingly tapped bond markets, banks and private lenders to fund data centers, power infrastructure and compute for AI. Goldman Sachs estimated that nearly $500 billion of AI‑related debt had been issued in 2026 as of August, according to the source text. JPMorgan estimated the five largest U.S. hyperscalers would spend roughly $697 billion on capital expenditures in 2026 as companies race to add computing capacity, per the source text.
Capitol Hill scrutiny and cross‑border flows
Wall Street’s work with strategically important Chinese firms has drawn attention in Washington. The House Select Committee on the Chinese Communist Party subpoenaed JPMorgan CEO Jamie Dimon and Bank of America CEO Brian Moynihan in July 2025 related to the Hong Kong listing of Chinese battery giant CATL, which the Pentagon had placed on its list of Chinese military companies—a designation CATL disputed, according to the source text. Republican Rep. John Moolenaar of Michigan, who chairs the House panel, urged U.S. financial institutions to withdraw from that offering.
Capital has also flowed in the other direction. U.S. stocks account for nearly half of the roughly 1 trillion yuan (about $150 billion) managed by Chinese outbound mutual funds, while Chinese investors increased holdings in American semiconductor names including Micron Technology, AMD, Sandisk, Lam Research and Applied Materials, Reuters reported. U.S. AI funding rounds involving investors from mainland China or Hong Kong rose from roughly $436 million in 2023 to about $8.9 billion through mid‑September 2026, according to S&P Global Market Intelligence data cited by Reuters.
What’s next
The source text states that President Donald Trump and Chinese leader Xi Jinping were set to attend a White House state dinner on Thursday.
