Hong Kong Stock Exchange raises 260 billion in the world, leading for the first time in four years, returning to 200 billion. Chinese investment banks dominate.

As the end of the year approaches, the activity of Hong Kong stock IPOs continues, with the industry generally expecting this active trend to continue at least until 2026. According to Wind data, in the first 11 months of this year, a total of 91 companies completed IPOs in the Hong Kong stock market, benefiting from large-scale IPO projects and raising a total of HK$259.89 billion. This not only marks Hong Kong Exchanges and Clearing Ltd. breaking the HK$200 billion mark in IPO fundraising for the first time in four years, but also securing the top spot globally in terms of fundraising amount, reaching a new record in fundraising scale. Among them, Contemporary Amperex Technology (03750), ZIJIN GOLD INTL (02259), Sany Heavy Industry (06031), and Chongqing Sokon Industry Group Stock (09927) all made it into the top ten IPO projects globally this year. Of note is the increasingly prominent role of Chinese securities firms in the Hong Kong stock IPO underwriting market. This year, a total of 38 sponsoring institutions participated in new stock issuances in Hong Kong, with over half of them being Chinese securities firms. CITIC, CITIC Securities, and Huatai Securities occupy the top three spots, with a significantly higher number of underwritten projects compared to traditional foreign banks. A recent report by Ernst & Young on the Mainland China and Hong Kong IPO markets pointed out that the Hong Kong stock IPO market is expected to maintain steady growth and further structural deepening until 2026. In terms of listing entities, in addition to the continued popularity of the A+H dual listing model, Chinese concept stocks returning and special tech companies, especially those in cutting-edge fields such as artificial intelligence and biomedicine, are expected to become important sources of listings. Hong Kong IPO fundraising totalled nearly HK$260 billion, topping the global charts Wind data shows that in the first 11 months of this year, a total of 91 new companies were listed on HKEX, raising a total of HK$259.89 billion. This fundraising amount represents a significant increase of approximately 228% compared to the same period last year, placing Hong Kong at the top of global exchanges in terms of fundraising amounts. A review by reporters of the changes in Hong Kong IPO fundraising scale in the first 11 months of 2025 revealed five key features. Firstly, large-scale IPOs have become the core drive, with A-share companies making significant contributions. So far this year, there have been one IPO raising over HK$30 billion and seven IPOs raising over HK$10 billion, a stark contrast to the previous year when only one project raised over HK$30 billion. Among them, companies listed on the A-share market have been an important force driving the growth of fundraising scale, with six A-share listed companies among the top ten Hong Kong IPOs. Secondly, from the perspective of issuance momentum, Hong Kong's IPO market shows clear seasonal characteristics. A top investment bank's Hong Kong investment banking professional told a reporter from Caixin that March to June and September to November are traditionally the peak seasons for Hong Kong IPOs. Data analysis confirmed this pattern, with 34 companies successfully listing from March to June this year and 33 companies going public from September to November, accounting for over 70% of the total. Thirdly, the new regulations have shown results, leading to a surge in IPO subscription rates and a decrease in first-day trading declines. With the effects of the new listing regulations manifesting, the enthusiasm and certainty of returns in Hong Kong's IPO market have significantly increased. As of November 26th, the average first-day return rate for new Hong Kong stocks listed in 2025 reached 38% (excluding those listed through SPACs, transfers, and introduction methods), a significant increase of 347 percentage points compared to the same period last year. Meanwhile, the first-day trading decline rate dropped to 23.08%, hitting a five-year low. Among the 39 new stocks listed after the implementation of the new rules, only seven experienced declines on their first day. Fourthly, investor participation is at an all-time high. The average oversubscription rate for Hong Kong IPOs in 2025 reached a staggering 1675.24 times, a 4.61-fold increase year-on-year and a new five-year high. Among them, 29 companies had oversubscription rates exceeding one thousand times, with GOLDEN LEAF INT breaking records with an oversubscription rate of 11,465 times, becoming the first stock in Hong Kong history to have an oversubscription rate of "ten thousand times." Fifthly, the diversification of cornerstone investors, with sovereign wealth funds making their first appearances. The proportion of IPOs in Hong Kong that introduced cornerstone investors reached 80.21% this year, a significant increase from 67.14% in 2024. The types of investors involved are becoming more diverse, including institutional investors, industrial capital, local governments, state-owned enterprises, and individual investors. Of note is the first appearance of overseas sovereign wealth funds from the Middle East, Singapore, and other countries as cornerstone investors in Hong Kong IPOs, bringing additional funds and an international perspective to the market. Chinese securities firms dominate the underwriting landscape In terms of underwriting institutions, the pattern of the Hong Kong IPO underwriting market for the first 11 months of 2025 has become clear, with the dominance of leading institutions continuing to be prominent, with Chinese securities firms taking the lead. According to Livereport data, China International Capital Corporation ranks first with 34 underwritten projects, maintaining a lead of 8 projects ahead of the second place, demonstrating its leading position in the Hong Kong IPO market. CITIC SEC (Hong Kong) ranked second with 26 projects, while Huatai Securities Holdings (Hong Kong) ranked third with 18 projects. It is worth noting that the advantage of Chinese institutions in the field of Hong Kong IPO underwriting continues to consolidate, with the top three institutions all having Chinese backgrounds, reflecting the deep coverage of local securities firms in the Hong Kong market. Among foreign institutions, Morgan Stanley Asia ranked fifth with 11 projects, the only foreign institution in the top five, with the underwriting activity of other foreign institutions relatively limited. In terms of distribution, the concentration of top-tier institutions is high, with the top five institutions - China International Capital Corporation, CITIC SEC (Hong Kong), Huatai International, Zhong Yin International, and Morgan Stanley Asia - accounting for nearly 60% of the total underwriting volume. In contrast, institutions ranked 6th to 11th, such as Goldman Sachs (Asia) and UBS Securities Hong Kong, have underwritten projects in the single or low double digits, showing a clear gap compared to the top tier. Hong Kong IPO market enters a new stage, remains hot In a recent report on the Mainland China and Hong Kong IPO markets by Ernst & Young, it was pointed out that the current IPO market remains hot and has entered a new stage. The report suggests that the trend of Hong Kong IPOs next year will be influenced by multiple factors. On the positive side, international long-term capital is gradually returning, favoring leading companies in segmented industries and those with good profits and cash flow. The transformation and upgrading of the Chinese economy are nurturing a large number of high-quality listing resources, especially in new energy, AI, and green technology sectors. At the policy level, the Mainland supports eligible companies to list in Hong Kong and encourages Hong Kong-listed companies to return to the Mainland, enhancing the willingness of companies to list first in Hong Kong and then in the Mainland. HKEX continues to promote the optimization of listing mechanisms, including reviewing the arrangements for multiple listings and advancing the "technology and enterprise specialization" program, to enhance market vitality. In addition, the acceleration of enterprises going global has promoted A+H, A splitting H listings, with the price difference between A and H shares narrowing or even inverting, increasing the attractiveness of Hong Kong stocks. Currently, there are over 300 active companies that have applied for listing, including many large companies, providing a reserve for the future. On the negative side, uncertainties such as global monetary policy, geopolitical issues, and overseas elections may exacerbate market volatility; US-China relations and slowing economic growth may also affect company profitability. It is worth noting that 2026 will see a wave of unlocking, which may pose a liquidity challenge to the market. Looking ahead to 2026, the report predicts that the Hong Kong IPO market will remain active but the growth pace will become steady, showing characteristics of further deepening in structure. The sources of listings are expected to be dominated by A+H, Chinese concept stocks returning, and special tech companies. Despite the pressure that unlocking may bring, the Fed's interest rate cut cycle is expected to improve global liquidity, coupled with support from southbound funds, the Hong Kong market is expected to remain stable. This article is a reproduction from "Caixin", GMTEight Editor: Jiang Yuanhua.