"All projects are heading towards Hong Kong stocks!" Hong Kong IPOs saw even more popularity this year, with fundraising increasing 7 times.

"IPO projects are all rushing to Hong Kong!" industry insiders sighed. With the hot fundraising performance and significant wealth effect, the Hong Kong stock market is attracting companies to accelerate their presence in the Hong Kong market. In the first five months of this year, 27 companies have listed their IPOs on the Hong Kong stock market, a 28.6% increase compared to the previous year; the total fundraising amounted to approximately 77.7 billion Hong Kong dollars, a more than 709% increase year-on-year. The market expects that 80 companies will land on the Hong Kong stock market this year, raising over 130 billion Hong Kong dollars. According to industry insiders, companies listing in Hong Kong are mostly part of the "A+H" strategy, and the hot Hong Kong stock market is being driven by the wealth effect. There is currently a structural adjustment in the A-share IPO process, with reasonable project size but a shrinking number of newly approved filings. Regulatory bodies are focusing on boosting market activity, potentially optimizing review policies and guiding high-quality companies to apply. In the long run, an active market ecosystem and enhanced confidence are key to improving the attractiveness of A-shares. Hong Kong IPO fundraising soared more than 7 times in the first five months Many companies have chosen to list in both A and H shares, with nearly 60 A-share companies heading to Hong Kong this year. Companies like Contemporary Amperex Technology, Jiangsu Hengrui Pharmaceuticals, and Chifeng Jilong Gold Mining have successively entered the Hong Kong stock market in May. According to LiveReport's big data, the IPO market in Hong Kong has been performing well in the first five months of the year. Out of the 27 new stocks listed, the probability of dark-market rise is around 56%, with an average increase of 13.5%; the probability of first-day gains is about 59%, with an average rise of 11.1%. In May, this trend was even more prominent, with only 2 out of 10 new stocks breaking even on the first day, and many seeing gains of more than 20%. This year has attracted over 1.5 million applications for subscription. Significant subscription multiples have been observed, with 12 new stocks receiving public subscriptions of over a hundred times their offering. According to the Hong Kong Exchanges and Clearing Announcement, in the first five months of the year, they received nearly 149 new listing applications, and the total number of listing applications reached 245. Aside from those already listed or pending approval, there are currently 146 projects in progress. Deloitte China predicts that by the end of 2025, there may be around 80 new listings on the Hong Kong stock market, raising between 130 billion and 150 billion Hong Kong dollars. The significant wealth effect of Hong Kong IPOs, coupled with fewer industry restrictions on companies seeking to list, has led to significant growth. For example, the "Hong Kong three golden flowers" like POP MART, MEXICANCORP, LAOPU GOLD, all in the new consumption field, have seen their stock prices hit all-time highs. As of June 5th, POP MART has surged by 171.05% this year, MEXICANCORP has risen by 116.79% since its listing, and LAOPU GOLD has surged by 274.79% this year. Among them, MEXICANCORP, which listed on the Hong Kong stock exchange on March 3rd this year, had a particularly impressive first day: its opening price was 262 Hong Kong dollars per share, 29.38% higher than the issue price of 202.50 Hong Kong dollars, reaching a total market value of 98.7 billion Hong Kong dollars; with an intraday peak increase of 45%, closing at 290 Hong Kong dollars, a single-day gain of 43.21%, raising the total market value to 109.347 billion Hong Kong dollars. One of the reasons MEXICANCORP's IPO attracted attention was its industry affiliation; as a consumer industry company, it had previously faced difficulties listing on the A-share market. Industry insiders are in hot debate about "projects all rushing to Hong Kong". How to rationally assess the hot IPO phenomenon in Hong Kong? Wang Ji leaps, a seasoned investment banker, pointed out that most of the companies currently choosing to list in Hong Kong fall under the category of "A+H" dual listing arrangements. The uncertainty in the A-share IPO process is one of the reasons why some companies are opting for Hong Kong listings. Even projects currently in the "review" stage are proceeding cautiously. He emphasized that the primary goal for regulatory bodies is to maintain the stability and activity of the capital market, and the IPO pace needs to align with this objective. A senior investment bank's sales representative noted that based on the current review pace, the number of companies in the A-share approval stage is at a reasonable level, and regulatory bodies may encourage more high-quality companies to submit listing application materials. Investment banker He Nanye's analysis suggests that the number of A-share projects currently under review is within a reasonable range, and there are no signs of a project shortage yet. However, it is expected to last until next year, when the number of projects will significantly decrease, prompting regulators to potentially relax the pace of listing expansion. He emphasized that this year's core goal is still to boost the vitality of the A-share market. He Nanye further speculates that internal regulatory bodies may be evaluating gradually easing restrictions on new project applications. For example, last week, the IPO application of Shaanxi Tourism was accepted, indicating a gradual unfreezing of the IPO review process in the large consumption industry, which had previously faced difficulties in applications. Additionally, Wang Ji leaps' analysis indicates that attributing stock market volatility solely to IPOs is a mistaken belief, but the impact of IPOs on stock market trends has become a narrative in the A-share market and has objectively influenced investor psychology. Historically, during bull market periods in A-shares, IPOs, additional financing, and reduction of holdings have not hindered index growth, primarily due to the market's profit-making effect attracting more funds seeking profits. This logic also applies to the Hong Kong stock market, as the rise in stock indexes generates wealth effects, attracting global capital into Hong Kong stocks and accommodating the increase in IPOs. "In essence, when the market is in a good condition, it can support larger IPO sizes, so even with a growing number of IPO companies, the index will not decline; conversely, in a bear market, the capacity for IPOs is smaller, so even with only a few IPO companies, the index may still decline," further elaborated Wang Ji leaps. Decrease in new advisory filings While there has been a slight uptick in new advisory filings in A-shares, there is a decrease compared to the same period last year. According to Hithink RoyalFlush Information Network iFind, as of June 5th, there have been 135 new advisory filings this year, up by 20.54% month-on-month but down by 41.81% year-on-year, with 232 filings at the same period last year.The size of the tutoring stock is still relatively large. As of June 5th, a total of 1574 companies planned to go public in the tutoring, and a total of 4322 companies have completed tutoring.In the review queue, the number of companies has decreased since the beginning of this year. Data from EasyDong shows that as of June 4, a total of 185 companies were in review, a decrease of 72 from the beginning of the year. There has been a significant increase in newly accepted listings, with 27 new listings accepted this year, a year-on-year increase of 1250%. In addition, this year, 64 companies have withdrawn their applications, a decrease of 67.18% compared to the same period last year when 195 companies withdrew. Similar to the increase in new listings, the improved performance in issuance and listing this year is attributed to the lower base of listed companies in the same period last year. Data shows that a total of 45 companies were listed this year, an increase of 15.38% from the same period last year, raising a total of 32.976 billion RMB, an increase of 20.88% compared to the same period last year. This article is translated from "Cai Lian She"; GMTEight Editor: Liu Xuan.