The difficulty of winning in the Hong Kong stock market IPO has increased, sparking a discussion about "retail investors losing their rights."

Data shows that this year, the difficulty of winning the lottery in Hong Kong stocks has indeed increased compared to the previous year. Among the 27 new stocks, excluding the SPAC listed by the shell company Zhao Gang Group, 9 new stocks have a first-hand winning rate in the lottery of 10% or below. Against this background, the special listing structure of the NHEHK IPO has also sparked a discussion on "retail investors losing rights". In Hong Kong stocks, due to the existence of a clawback mechanism, newly popular stocks usually have a certain bias towards retail investors to increase their allocation rate. However, this time, NHEHK applied for an exemption from the clawback mechanism to ensure that the retail investors' subscription portion is fixed at 7.5%, while institutional investors ate up more than 90% of the "cake". It is worth noting that NHEHK's decision is not unique, as the Hong Kong Stock Exchange is systematically reducing the influence of retail investors in the new stock subscription process. In February of this year, HKEX's Chief Executive Officer Charles Li discussed the proposed reform of new stock pricing in Hong Kong stocks, mentioning that increasing the proportion of new stocks allocated to book-building is to allow buyers and sellers with the most bargaining power to fully negotiate and to reflect market demand to the fullest extent possible, minimizing price fluctuations after the new stock is listed and avoiding large fluctuations in stock prices.