Hong Kong Equity Refinancing Opens Strong In 2026, Raising Over HKD 27 Billion

The Hong Kong capital market commenced 2026 with a pronounced surge in refinancing activity. As of January 18, listed issuers in Hong Kong had raised in excess of HKD 27 billion through placements, rights issues and consideration issuances, representing more than a twenty‑fold increase versus HKD 1.1 billion in the same period of 2025 and establishing an active tone for the year’s capital operations.

This robust start builds on the record‑setting refinancing environment of 2025. Data from Geshang Fund indicate that total refinancing in Hong Kong reached HKD 325.32 billion in 2025, a marked expansion from 2024 and the first time annual refinancing exceeded IPO proceeds for the same year (approximately HKD 285.7 billion). Public filings show that BYD’s HKD 43.5 billion follow‑on offering was the largest refinancing transaction in Hong Kong in the past decade, while Xiaomi（01810.HK）, Hua Hong Semiconductor, China Hongqiao and Geely Automobile were among the issuers that completed fundraising programs in excess of HKD 10 billion. Numerous companies executed multiple rounds of refinancing in 2025, creating a pattern of continuous capital replenishment.

Market participants attribute the refinancing momentum to a combination of improved market sentiment and the structural flexibility of Hong Kong’s issuance regime. Geshang Fund researcher Tuo Hejiang identifies two principal drivers: the Hang Seng Index’s 27.77% gain in 2025, which supported valuation recovery and investor confidence, and Hong Kong’s refinancing advantages, including the absence of statutory lock‑up periods, rapid approval processes, multi‑currency issuance capability and flexible pricing mechanisms. The market’s design allows boards to conduct placements under general shareholder authorization—typically up to 20% of issued shares—without prior regulatory approval and without limits on the number of financings, enabling issuers to capture market windows efficiently.

The early‑year refinancing activity also displays distinct structural characteristics. Issuers undertaking financings span sectors such as petrochemicals, construction, software services, discretionary consumption, transportation, non‑bank financials, pharmaceuticals and healthcare. Fundraising amounts vary materially: SF Holding, J&T Express‑W, GF Securities, Pharmaron and Youran Dairy each raised more than HKD 1 billion, while ten other issuers secured proceeds above HKD 100 million. Use of proceeds is closely aligned with corporate strategy, with companies allocating funds to international expansion, technology and capacity investment, and balance‑sheet optimization. For example, Kuaishou Technology intends to apply bond proceeds to general corporate purposes and to bolster overseas cash reserves to support global expansion, while Pharmaron plans to dedicate roughly 70% of its proceeds to strengthen laboratory and production capabilities.

Placements remain the dominant refinancing instrument. Wind data show that of 36 refinancing cases recorded in 2026 to date, 27 employed placements, five used rights issues and four relied on consideration issuances, underscoring the market preference for the efficiency and pricing flexibility of placements. At the same time, issuance methods are diversifying. A notable development in 2026 is the increased use of consideration issuances to effect strategic cross‑shareholdings and promote industry consolidation. The reciprocal strategic investment between SF Holding and J&T Express exemplifies this trend: SF issued 226 million H shares to J&T, raising HKD 8.299 billion, while J&T issued 822 million Class B shares to SF, also raising HKD 8.299 billion; the post‑transaction mutual holdings are subject to a five‑year lock‑up and are intended to foster deeper operational collaboration across Asia’s logistics network.

Observers note that the composition of refinancing issuers in Hong Kong differs from that of A‑shares, with a relatively higher representation of traditional industries and consumer sectors and a lower share of emerging‑industry issuers, reflecting the complementary roles of the two markets in servicing the real economy. Current market features include active issuance of convertible bonds—particularly zero‑coupon convertibles—concentration of financing among leading enterprises supported by global long‑term capital, a prominent role for A+H dual‑listed companies in refinancing activity, and a broader set of uses for proceeds that extend beyond working‑capital replenishment to include industry consolidation, R&D investment and debt optimization.

Looking ahead, market professionals expect Hong Kong’s refinancing market to remain highly active, supported by the market’s issuance flexibility and its function as a global capital gateway. Forecasts anticipate sustained high aggregate fundraising levels with moderated growth rates, continued demand from capital‑intensive sectors, ongoing optimization of issuance tools and mechanisms—with combinations of general authorization and convertible bonds becoming more common—and a gradual shift in financing structure as hard‑technology and biotech issuers gain prominence. Cross‑border capital participation is expected to increase, further enhancing market liquidity. Tuo Hejiang projects that refinancing activity will continue to grow, with issuers increasingly directing proceeds toward deleveraging and capital‑structure optimization, strengthening R&D capabilities and pursuing strategic mergers and acquisitions.