The shortage of manpower in accounting firms, combined with the approaching performance period of Hong Kong stocks, may temporarily cool down the Hong Kong IPO boom.

Mainland companies' enthusiasm for listing in Hong Kong through IPO is expected to continue in 2026. However, with the upcoming earnings season in March, the local accounting sector, which has long been facing a shortage of manpower, may see a slight decrease in the number of new IPO applications. According to reports, some accountants have revealed that due to the need to complete annual audit work for existing listed company clients and update financial data for IPO clients with pending applications, companies that became IPO clients only in the first quarter of this year are being told to wait until the end of March before work can commence. Some accountants have mentioned meeting with 6 potential IPO clients in one day, who were seeking advice on listing procedures, timing, and fees. Meanwhile, some accounting firms have limitations on the number of clients each partner can handle, including listed companies and IPO clients. In addition, the Big Four accounting firms are currently focusing on larger IPO clients, such as companies planning to list first in China's domestic market before listing in Hong Kong, and will consider factors such as the client's industry and preparedness for listing when allocating manpower. Reports also mentioned that the Hong Kong Institute of Certified Public Accountants stated that the recent resurgence in the capital markets and the increase in new IPO applications have brought business opportunities for accountants but have also increased the pressure on ensuring the quality of new listings. The institute will closely monitor related work, and if any violations are found, appropriate disciplinary action will be taken to maintain market quality and protect investor interests. The institute is responsible for regulating accountants and ensuring compliance with professional standards, including serving as reporting accountants or auditors in IPOs. Last year, the Hong Kong Securities and Futures Commission and the Stock Exchange of Hong Kong sent letters to IPO sponsors to ensure quality. The Securities and Futures Commission issued another letter last Friday instructing listing sponsors to promptly conduct internal reviews to address serious deficiencies in the preparation of prospectuses.