In March, the number of sponsor licenses issued for IPOs in Hong Kong increased by more than 50% compared to the previous month, but still remained below historical average levels.

According to the media quoting data from the Hong Kong Securities and Futures Commission, in March, the Securities and Futures Commission issued a total of 43 advisory licenses for institution financing (Type 6 license), representing a 53% monthly rebound, significantly recovering from the low point in February. However, it is still far below the historical average of over 100 licenses issued per month, indicating that while the market is gradually recovering, regulatory agencies are still maintaining a high threshold for industry access. Institutions holding this license are responsible for providing advice on listing sponsorship, due diligence, and compliance advisory services for corporate capital structure and reorganization. The report pointed out that the issuance of licenses is a barometer of the health of the Hong Kong capital market. Although the numbers have increased significantly month by month, the industry is still adjusting after a period of strict scrutiny. Last month, there were reports that the Securities and Futures Commission of Hong Kong limited the number of active projects that sponsors can pursue to a maximum of 5. Zhao Jiali, founder of QReg and former director of the Securities and Futures Commission's Licensing Department for intermediary institutions, suggested that this data may indicate that the Securities and Futures Commission of Hong Kong is trying to accelerate the process while maintaining strict quality standards. Ye Zhiheng, Executive Director of the Securities and Futures Commission's Intermediary Institutions Department, responded in a statement, expressing encouragement for the positive response of sponsors in resource allocation and emphasizing that the Securities and Futures Commission of Hong Kong's regulatory approach is practical and results-oriented. They will continue to observe whether the efforts of sponsors can a noticeable improvement in the quality of IPO work in the coming months.