Investment banks are competing for Hong Kong IPO shares, with Hong Kong IPOs continuing to heat up, raising a total of 198% more funds year-on-year.

The Hong Kong capital market is entering a new pattern of dual recovery. On one hand, with the optimization of regulatory environment and improvement of market mechanisms, the wave of Chinese concept stocks returning to Hong Kong continues to heat up. On the other hand, driven by improvements in liquidity and reforms in the listing system, the Hong Kong IPO market is showing a comprehensive warming trend. Xu Kang, chief analyst at Huachuang Securities, stated that with the gradual normalization of IPOs in the A-share market, listing in Hong Kong is still the preferred option for companies. On one hand, listing in Hong Kong attracts international capital to expand international business layouts. On the other hand, leveraging the international platform of the Hong Kong stock market enhances global influence. 21 companies conducted Hong Kong IPOs, raising funds increased by 198% year-on-year Looking back at the issuance of Hong Kong IPOs this year, data from Wind shows that as of May 14, the Hong Kong market has welcomed 21 companies going public this year (based on listing dates), raising a total of HK$23.472 billion, a 40% increase compared to the same period last year (15 companies); the actual amount raised increased by 198.33% year-on-year. Among them, there were 4 new stocks that raised over HK$2 billion and 8 new stocks that raised over HK$1 billion. Currently, there are still companies awaiting listing after completing the subscription stage, such as Green Tea Group and Contemporary Amperex Technology, with Green Tea Group raising HK$1.21 billion and Contemporary Amperex Technology raising HK$31 billion. Among them, Contemporary Amperex Technology is the third A+H new stock to list on the Hong Kong Stock Exchange this year. In addition, companies that have completed the hearing process with the Hong Kong Stock Exchange but have not yet launched public sales include PAG Biotech, Beijing Meinian Hospital, Xiamen Jihong Package Technology, and MIRXES, among others. Currently, there are 149 companies in the "under review" status. Looking at the number of listing applications under review by the Hong Kong Stock Exchange, the top three industries are information technology, healthcare, and consumer discretionary. Overall, mainland Chinese companies applying for listing on the Hong Kong Stock Exchange this year, apart from those new to the market, are primarily in two categories: transitioning from applying for IPOs in overseas markets such as A-shares and US stocks to applying for Hong Kong IPOs, and multiple A-share listed companies choosing dual listing in Hong Kong. As for the notable trend of the resurgence in Hong Kong IPOs, a Guoyuan International research report pointed out that it is mainly driven by three core factors: first, breakthroughs in Chinese AI technology have restored sentiment and confidence in the Hong Kong stock market. When market sentiment is optimistic, the IPO market is usually more active, and investor participation is higher. Second, with the Fed starting a rate-cutting cycle, the significant improvement in liquidity from Southbound funds and foreign capital inflows into the Hong Kong stock market is helping to activate the Hong Kong IPO market. Third, the profit-making effect from new listings is more apparent, institutional participation is increasing, and more individual investors are attracted. The first-day breakage rate for new listings in 2025 is only 28%, significantly lower than the 50% of the same period last year. Haitong International and Zhongyao Capital dominate in the number of sponsored IPOs Data from Wind shows that in 2025, a total of 23 investment banks participated in the sponsorship work of 21 Hong Kong IPOs, with large Chinese investment banks leading the way in sponsored business volume. Specifically, Huatai International and Zhongxin International had the most sponsors with 4 each, accounting for 38.1% of the share. CICC, Goldman Sachs, and CMB International followed with 3 each; Morgan Stanley and Furui Financial had 2 each. A total of 16 investment banks, including Haitong International, Zhuoyao Capital, Ruijin Capital, HSBC International, Merrill Lynch, Guangyin International, ICBC International, Haitong International, Orient International, Citigroup, UBS Group, ICBC International, Deutsche Securities, etc., have sponsored only 1 listed company in the Hong Kong IPO market. It is worth noting that from the perspective of IPO companies in the Hong Kong market, companies in the "new consumption" and "hard technology" sectors are gradually becoming the core driving force behind the surge in Hong Kong listings. Since the beginning of the year, the consumption sector has continued to perform well in the Hong Kong stock market, maintaining a dominant position in the market. Since the beginning of the year, the two most outstanding new listings on the first day in the Hong Kong stock market originated from the consumption sector, with an average increase exceeding 40%, demonstrating a strong growth trend and market appeal. Looking ahead, Lai Yeye, chief strategic analyst at Guoyuan International, believes that the industry structure of the Hong Kong IPO market will continue the trend of dual drive from "technology + consumption". In the field of technology, the artificial intelligence industry chain and its applications will dominate, while in consumption, the non-traditional segmented consumption track dominated by "self-indulgence" consumption will be the core. These industries' IPOs are expected to have a larger market value space, higher valuation levels, and higher subscription multiples, which will help achieve better stock price performance after listing. This article is reprinted from "Caishen Society," edited by GMTEight: Jiang Yuanhua.