Goldman Sachs: Recommend investors to choose IPO subscriptions based on factors such as large market capitalization and listing in a single market.

Goldman Sachs released a research report focusing on three strategies to achieve excess returns in the recovering Hong Kong IPO market. The bank suggests that although newly listed companies tend to show strong post-listing returns, they also experience high volatility. Therefore, it is recommended to focus on companies with larger market capitalization, listed on a single market, strong revenue growth, and a moderate cornerstone shareholding ratio (30-50%), as historical data shows that these companies often have sustainable excess returns. Goldman Sachs advises closely monitoring the upcoming expiration of the approximately $274 billion lock-up period, which usually leads to a mild decrease in stock prices. Additionally, the bank suggests strategically positioning passive fund inflows based on factors such as rapid inclusion in indexes and the southbound trading under the Stock Connect program between Hong Kong and mainland China.