Hong Kong's IPO is becoming the main battlefield for fundraising, showing four major characteristics.

"The Hong Kong Stock Exchange's bell is ringing louder and louder!" This statement is continuously being validated. On September 30th, ZIJIN GOLD INTL was listed on the main board of the Hong Kong Stock Exchange, marking the third significant capital operation for ZIJIN MINING after its listing on the H-share market in 2003 and the A-share market in 2008. The listing of ZIJIN GOLD INTL signifies a new phase in the company's globalization strategy and serves as a vivid footnote to the hotness of the Hong Kong IPO market in the first three quarters of this year. Wind data shows that a total of 68 companies went public in the Hong Kong market in the first three quarters of this year, a 47.83% increase compared to the same period last year. The total amount raised reached HK$182.97 billion, a staggering 222.16% increase year-on-year, setting a new record for the same period since 2021 and ranking first in the global new stock market. Journalists have identified four main characteristics of the Hong Kong IPO market in the first three quarters of this year. Firstly, Chinese securities firms play a leading role and dominate the market. As China Securities Co., Ltd. Chairman Liu Cheng previously stated, Chinese securities firms in Hong Kong have transformed from mere "participants" to "leading forces." Chinese securities firms have taken the absolute lead in both the number of sponsorships and the size of underwriting, becoming the core driving force behind the Hong Kong IPO market. It is worth noting that in the case of Zijin Gold International's listing, CITIC SEC and Morgan Stanley jointly served as joint sponsors and global coordinators, once again demonstrating the professional capabilities of Chinese securities firms in large-scale overseas listings of mining enterprises. Secondly, there is a strong trend of A+H listings with the gathering of major projects. Five companies have raised over HK$10 billion so far this year, occupying the top five IPO spots. Four of them are A+H listings, with Contemporary Amperex Technology raising over HK$41 billion, becoming the largest IPO project globally this year. Jiangsu Hengrui Pharmaceuticals, Zhejiang Sanhua Intelligent Controls, and Foshan Haitian Flavouring and Food also raised over HK$10 billion each. Thirdly, cornerstone investors are deeply involved with high subscription rates. Fifty-seven companies introduced cornerstone investors, with an average cornerstone stake reaching 83.82%, demonstrating institutional investors' strong confidence in Hong Kong IPOs. Furthermore, leading companies are significantly more attractive to cornerstone investors than non-leading companies, with ZIJIN GOLD INTL (29 investors) and Contemporary Amperex Technology (23 investors) attracting the most cornerstone investors. Lastly, the debut performances on the first day of trading were stable, providing investors with a strong sense of achievement. The majority of new stocks saw an increase on their first day of trading, with a significant positive average first-day return rate, and only 16 companies experienced a price drop, with a low rate of 23.52%, the lowest level in the past three years. This has brought considerable profits to investors in new stock offerings, further consolidating the attractiveness of the Hong Kong IPO market. In the past week alone, ZIJIN GOLD INTL opened high on its listing day, rising by 60.78% by midday compared to its issue price; as of the close on October 3rd, ZIJIN GOLD INTL's share price had risen by approximately 90% since its listing, while HIPINE and PATEO achieved cumulative gains of over 4.6 times and over 50% respectively during the same period, becoming typical examples of profitable new stocks in the Hong Kong market. Furthermore, the attractiveness of the Hong Kong market to global investors continues to be evident. As of now, there are 298 companies waiting to go public, and the lineup of A-share companies planning to list in Hong Kong is growing. LiveReport shows that 78 A-share companies have submitted applications to the Hong Kong Stock Exchange for listing this year. Competition among Chinese securities firms in Hong Kong IPOs The Hong Kong market, as a global financial center, has always been a battleground for securities firms. In recent years, Chinese securities firms have been increasingly eye-catching in this market and are accelerating in capturing market share. In terms of the number of sponsorships, Chinese securities firms have clearly taken the lead. In the first three quarters of 2025, CICC International topped the list with 24 sponsorships, followed by CITIC SEC (Hong Kong) with 18 sponsorships, and Huatai Financial Holdings (Hong Kong) completing 13 sponsorships, all performing well. By comparison, foreign major players such as Morgan Stanley Asia and Goldman Sachs (Asia) only had 9 and 6 sponsorships respectively. Chinese securities firms are clearly leading in terms of quantity. While Chinese securities firms lead in terms of quantity, the Hong Kong market remains a highly competitive "red sea." Data shows that there are limited sponsorships from tail-end brokerages, indicating a gradual increase in industry concentration. It is worth mentioning that the vigorous development of the Hong Kong market is also an important driving force for many securities firms to expand their international businesses. A medium-sized brokerage in North China revealed to journalists that to strengthen synergy between domestic and international investment banking businesses, the company has established a multidimensional linkage mechanism. For example, the parent company's investment banking committee and Hong Kong colleagues participate in monthly and annual meetings together, enhancing work and project information sharing; investment banking training sessions invite Hong Kong colleagues to teach, further strengthening understanding of international business; and personnel from domestic and international investment banking engage in job rotations to enhance cooperation and drive business awareness. On October 3rd, Guolian Minsheng Securities announced that its Hong Kong subsidiary had officially obtained approval from the Hong Kong Securities and Futures Commission, obtaining a Type 1 securities trading license. The company stated that it would use this opportunity to focus on building three main business lines: securities underwriting, sales and trading, and asset custody. By integrating these three business lines, the company plans to create an integrated service platform of "underwriting - trading - custody" to enhance cross-border service cooperation. Journalists learned that in addition to traditional IPO sponsorships, Chinese securities firms are strengthening their overall competitiveness through diversified business layouts. They are continuously focusing on areas such as mergers and acquisitions, asset management, and institutional brokerage to gradually establish a comprehensive service system covering the entire life cycle of enterprises. 78 A-share companies list with the Hong Kong Stock Exchange As an important bridge connecting mainland China with global capital, the Hong Kong capital market has always played a key role in the global financing system, and the listing dynamics have always been a focus of the market. With the close of the third quarter of 2025, the overall picture of the new round of listing applications to the Hong Kong Stock Exchange is gradually becoming clear. According to LiveReport big data statistics, as of September 30, 2025, a total of 298 companies have submitted listing applications to the Hong Kong Stock Exchange this year and have not yet conducted a prospectus or been listed, with 5 companies having passed the Hong Kong Stock Exchange hearing. In recent years, the activity of mainland Chinese companies listing in Hong Kong has been consistently high. According to statistics, mainland Chinese companies accounted for over 90% of the IPOs on the Hong Kong Stock Exchange in 2024, becoming the absolute main force in the new stock issuance of Hong Kong stocks. Behind this trend is the Hong Kong Stock Exchange's continuous optimization in terms of listing system flexibility, approval efficiency, and sector innovation. For example, its recent introduction of the "Tech Enterprise Line" mechanism has provided a more convenient listing channel for special technology companies and biotechnology companies, supporting confidential submission of applications and further enhancing market attractiveness. It is noteworthy that among the companies in the queue for listing, there are many well-known enterprises from the A-share market. LiveReport data shows that 78 A-share companies have submitted applications to the Hong Kong Stock Exchange this year, including industry leaders such as Luxshare Precision Industry, Muyuan Foods, Chongqing Sokon Industry Group Stock, Victory Giant Technology, and Sichuan Biokin Pharmaceutical, with 12 of them having a market value exceeding HK$100 billion. The concentration of these companies going public in Hong Kong not only reflects the strong attraction of high-quality mainland Chinese enterprises to the Hong Kong capital market but also indicates that the "A+H" dual-platform strategy is becoming an increasingly common choice for more listed companies. Is there something to look forward to in the fourth quarter for the Hong Kong stock market? Historical data shows that the Hong Kong stock market typically performs well in the fourth quarter, a phenomenon known as the "year-end effect," which is related to factors such as fund allocation expectations for the next year, policy windows, and more. Additionally, the Hong Kong stock market currently remains a "valuation gap" among major global markets, with the valuation level of the Hang Seng Tech Index only about half of that of the Nasdaq Index. As for fund flows, since the beginning of 2025, the southbound capital has accumulated a net inflow of HK$1.0842 trillion to the Hong Kong stock market, far exceeding previous years' levels, reaching a new high in recent years. Founder has expressed optimism about the Hong Kong stock market in a research report. The institution points out that at the current point in time, the uptrend in the Hong Kong stock market has not ended yet, and it recommends investors to continue focusing on undervalued stocks represented by the Hang Seng Tech Index for opportunities to catch up. Founder further analyzes that the market is currently at the end of the economic downturn phase, combined with continuously emerging policy benefits, confidence in both the A-share and Hong Kong stock markets has significantly recovered; meanwhile, the continuous flow of southbound funds into the Hong Kong stock market, along with the Fed's interest rate cut cycle beginning, could further improve the liquidity environment in the Hong Kong stock market. Historically, the October effect on the Hong Kong stock market is usually significant, and major broad indices tend to perform well during this month. Taking into account these various factors, Founder believes that the Hong Kong stock market's expectations for a "Red October" rally are worth looking forward to. As the Hang Seng Index successfully broke through and stabilized at the key milestone of 25,000 points in the third quarter, market expectations for the future trends of the Hong Kong stock market have further warmed up. In this context, CCB International has also provided an assessment of the Hong Kong stock market. With the Hang Seng Index standing firm at a key level, a virtuous circle between the primary and secondary markets in Hong Kong has been further strengthened, and the bullish trend has been largely established. CCB International emphasized that the current investment logic in the Hong Kong stock market is transitioning from valuation repair to valuation reevaluation based on new quality productivity and high-quality development, a trend that is gradually forming market consensus and is expected to bring new upward momentum to the Hong Kong stock market.