Studying IPOs Until 2 A.M.: Retail Investors Spend Over HK$600,000 on New Listings—Are They Making Money?

Liu Busi, a Shanghai-based programmer and newcomer to Hong Kong IPO investing, reported earning approximately HK$36,000 after just over half a year of activity. He achieved allotments in 9 out of 11 IPO subscriptions in 2025. According to Wind data, as of July 10, a total of 51 new stocks had been listed on the Hong Kong Stock Exchange this year, reflecting a 34.21% increase from the same period in 2024.

Liu began his IPO journey in January 2025 after being inspired by a friend’s gains from Mao Geping's debut, which surged around 70% on the first trading day. His first allotment was BlueArk, which he sold in the gray market for a return of nearly 60%, earning around HK$11,000. Encouraged by this early win, Liu continued to participate in other new listings, including Mixue Group and Auntea Jenny.

Liu emphasized the intensity of research and preparation required for each IPO, often staying up until 2 a.m. He assessed company fundamentals, sector trends, and compared A-share prices with Hong Kong offering prices, especially for dual-listed firms. Notably, he allocated HK$300,000 for Jiangsu Hengrui’s IPO and HK$700,000 (approximately RMB 640,000) for tea-based chains. He also maintained a detailed investment journal with over 200,000 words. Out of the nine stocks he was allotted, eight yielded positive returns, totaling HK$36,138.39.

Another retail investor, Li Jiaxin, participated in her first IPO in May 2025, starting with Contemporary Amperex Technology. She later subscribed to new listings including Jiangsu Hengrui, Zhejiang Sanhua Intelligent Controls, and Chow Tai Fook Jewellery. Out of 11 applications, she secured 8 allotments and achieved an overall return of about 17%.

A more experienced investor, Daozai from Guangdong, has been involved in Hong Kong IPOs since 2018. His first allotment was Xiaomi（01810.HK）, which debuted below issue price. Although he held the stock until it reached HK$30 per share, a friend who averaged down at HK$11 eventually achieved over 5x returns. Initially focused on short-term profits, Daozai now differentiates between overpriced IPOs and those with long-term potential.

In the first half of 2025, Daozai was allotted 19 IPOs, earning roughly HK$50,000 (about RMB 45,000). Since 2018, around 40% of his total investment returns have come from Hong Kong IPOs. He credits the market’s T+0 trading system, lack of daily price limits, and low entry barriers for its appeal.

Wind data shows that by July 10, total IPO financing reached HK$123.564 billion in 2025, up 581.77% from HK$18.124 billion in the same period last year. A securities professional noted that Hong Kong’s IPO market had seen moderate growth between 2016 and 2018, strong momentum from 2020 to 2022, and a pullback in 2023. As of 2025, activity has largely returned to 2022 levels. The composition of listings has also shifted from financial institutions and real estate to sectors such as internet, advanced technology, biopharmaceuticals, new energy vehicles, and semiconductors.
Among the newly listed companies this year, 33 stocks reported positive first-day average price movements, with six exceeding 50% gains. ImmuneOnco-B led with a 98.25% jump from its issue price of HK$94.6 to an average of HK$187.55. AbogenBio-B followed with a 70.32% gain. Other notable performers included BlueArk, Ronda Technology, and IFBH.

According to veteran investment banker Wang Jiyue, since the second half of 2024, Hong Kong's market rally has attracted global capital, lifting market activity. A-share listed companies are also accelerating Hong Kong listings to support overseas expansion and capital needs. These factors have jointly boosted the Hong Kong IPO market.

In the first half of 2025, the Hang Seng Index closed at 24,072.28, up 20% from the beginning of the year. The Hang Seng Tech Index and the Hang Seng China Enterprises Index also rose by around 19%.

Tian Lihui, Director of the Financial Development Research Institute at Nankai University, noted that while renewed IPO activity reflects structural opportunities, investors should remain cautious. He advised beginners to focus on company fundamentals, prioritize firms with industrial backing or unique industry positions, and avoid chasing volatile gains. He also recommended setting limits on IPO allocations to prevent over-leverage.

Wind data showed that out of the 51 IPOs listed in 2025 so far, 18 debuted with average trading prices below their issue prices. In 2024, 29 of the 70 newly listed stocks ended their first trading day below issue price.

Tian added that the IPO market is transitioning from capital-driven demand to value-based selection. Investors should distinguish between genuine valuation recovery and market bubbles while guarding against risks during this rebound phase