Short-Term Momentum in Hong Kong Stocks Continues to Rise, Mid-Cap Equity Placements Exceed HKD 10 Billion in Two Weeks

Hong Kong’s stock market has continued its recent upward trajectory, with the Hang Seng Index gaining more than 3% since the beginning of July and repeatedly approaching its highest levels of the year. With short-term market optimism rebounding, a number of mid- and small-cap companies have taken advantage of elevated valuations to initiate refinancing plans, resulting in a renewed wave of equity placements.

Data compiled by Wind shows that from July 7 onward, over 30 listed companies in Hong Kong released rights or placement announcements within two weeks, with the combined amount exceeding HKD 10 billion. For comparison, only 43 IPOs were completed in Hong Kong during the first half of 2025, raising a total of approximately HKD 106.713 billion.

Industry analysts note that Hong Kong-listed shares have made considerable gains this year, particularly among mid-cap firms, reflecting a broader market trend. Capital raising activities at current price levels align with market fundamentals. Moreover, a surge in interest from mainland businesses in pursuing listings in Hong Kong suggests trading volumes may climb further. Recent placement activities have been concentrated within several key sectors, notably technology, consumer retail, and the pharmaceutical and biotech industries.

Since January, equity placements in Hong Kong have nearly matched the pace of initial public offerings. Leading players including BYD, NIO, Xiaomi (01810.HK), and Horizon Robotics have successfully executed large refinancing deals.

Wind statistics show that by the end of June, over 250 companies listed in Hong Kong had completed placement announcements in 2025, raising close to HKD 150 billion. This marks a year-on-year increase of roughly 300%, already surpassing the full-year total recorded in 2024.

Everbright Securities research suggests that the current global economic environment is characterized by an easing cycle, with the U.S. Federal Reserve anticipated to lower interest rates in the latter half of the year. Improved global liquidity could enhance capital flows into the Hong Kong market. The recent resurgence of IPOs and refinancing is seen as a magnet for international investment, particularly as new high-quality assets enter the exchange.

The same analysis highlights that emerging trends in the tech and consumer segments will continue to draw interest to Hong Kong-listed Chinese assets. These inflows may play a central role in sustaining the market’s current strength.