Stepfun, one of China's AI Six Tigers, has completed a new US$2.5 billion (HK$19.4 billion) funding round and dismantled its red-chip structure, accelerating its push toward a Hong Kong initial public offering, according to STAR Market Daily. Earlier market rumors suggested Stepfun plans to list in Hong Kong this year, aiming to raise around US$500 million. The latest funding round introduced investors including global handset ODM manufacturer Huaqin Technology (3296), CMOS image sensor supplier OmniVision Technologies (0501), and ZTE Corporation (0763), spanning segments from end-product manufacturing to upstream core components. Stepfun completed its share reform in late April, transforming from a limited liability company into a joint stock company, a key preparatory step for a Hong Kong IPO. The Hong Kong Investment Corporation also appeared on Stepfun's shareholder list. Stepfun was named by MIT Technology Review as one of the four Chinese AI startups worth watching beyond DeepSeek. Founder Jiang Daxin, former vice president at Microsoft, said Stepfun has a team of over 500 members, of whom nearly 80 percent are algorithms and technical staff. Stepfun has pursued cooperation with industry leaders in financial information, content creation, smart terminals, and consumer electronics, including the AI agent Xiao Caishen with Cailian Press and safety inspection applications with tea chain Chabaidao. China's AI Six Tigers include Zhipu (2513), Moonshot