LSEG: Hong Kong IPO fundraising in the first quarter increased more than 5 times, ranking first globally.

London Stock Exchange Group (LSEG) Deals Intelligence team released data on the first quarter of 2026 for the Hong Kong Equity Capital Markets (ECM) and mergers and acquisitions, showing that the performance of the Hong Kong ECM in the first quarter of this year hit a five-year high, with IPO fundraising more than quintupling and new stock fundraising ranking first in the world. During the period, the total financing amount of the Hong Kong ECM was 21.16 billion US dollars, a year-on-year increase of 26.4%, the highest level since the first quarter of 2021, when it was 37.5 billion US dollars, with the number of issuances also increasing by 65.8% year-on-year. In terms of new stock listings, the original IPOs and secondary listings of the Hong Kong Main Board and GEM accounted for 63% of the total ECM financing amount in the first quarter, raising a total of 13.3 billion US dollars, a 5.3 times increase year-on-year, setting a new high record for the first quarter in five years. The total number of IPOs and secondary listings also hit an eight-year high, increasing by 153.3% year-on-year. Among them, Chinese companies led the new listing activities, accounting for 99.9% of the total financing amount, raising a total of 13.26 billion US dollars, which was more than six times higher than the same period last year, with the number of issuances nearly tripled. The high-tech industry accounted for 49.1% of the total IPO and secondary listing amount in Hong Kong, raising a total of 6.5 billion US dollars through 15 new issuances, while there were no such issuances in the same period last year. As for the global new stock market, the total financing amount for IPOs and secondary listings in the first quarter was 40 billion US dollars, a 47.8% increase year-on-year. The Hong Kong Main Board currently ranks first among global stock exchanges, with a market share of 33%, higher than Nasdaq's 14.1% and the New York Stock Exchange's 12.4%. During the period, Chinese and American issuers accounted for 41.5% and 21% of the total financing amount. The financing amount for original IPOs was 30.9 billion US dollars, a 16.5% increase year-on-year, while the financing amount for secondary listings was 9.2 billion US dollars, approximately 15 times higher than the same period last year, marking a historic start. However, the number of global IPOs decreased by 19.6% year-on-year, while the number of secondary listings increased by over three times compared to last year. In addition, the total financing amount for share placements in Hong Kong in the first quarter was 5.8 billion US dollars, a 58.5% decrease year-on-year, but the number of placements increased by 44.8% compared to the first quarter of last year. The financing amount for convertible bonds was 2.1 billion US dollars, over five times higher than the same period last year. The high-tech industry takes a leading position in Hong Kong ECM activities, with a market share of 36.0% and a financing amount of 7.6 billion US dollars, significantly higher than in the first quarter of last year, mainly driven by issuances related to semiconductors, software, and information technology. The industrial and consumer goods sectors follow with market shares of 16.3% and 14.8% respectively. In terms of mergers and acquisitions in Hong Kong, LSEG noted that the total amount of M&A transactions involving Hong Kong in the first quarter was 36.9 billion US dollars, a 47.2% increase year-on-year, reaching the highest level for the first quarter in ten years. The energy and power sector took the lead with a transaction amount of 21.7 billion US dollars, accounting for 58.7% of the total transaction amount, an 89.5% increase from the same period last year. The raw materials industry ranked second with a market share of 13.4% and a transaction amount of 4.9 billion US dollars, more than nine times higher than the same period last year. The media and entertainment industry ranked third with a 7.7% share, a 112.6% increase year-on-year. It is worth noting that ENGIE SA of France has agreed to acquire UK Power Networks, the UK power network, from related entities of CKH HOLDINGS at a price of 21.3 billion US dollars, marking the largest transaction in the Hong Kong energy and power sector since records began in 1980.