As the year draws to a close, Hong Kong's IPO market remains vibrant, with industry expectations that this momentum will persist at least until 2026. Wind data shows that in the first 11 months of this year, 91 companies completed IPOs in Hong Kong, raising a total of HKD 259.889 billion, driven by large-scale listings. This not only marks the first time in four years that Hong Kong's IPO fundraising has surpassed the HKD 200 billion threshold but also positions the exchange as the global leader in IPO proceeds, setting a new record. Notably, CATL (03750), ZIJIN GOLD INTL (02259), SANY HEAVY IND (06031), and SERES (09927) all ranked among the world's top 10 IPOs this year.
Chinese investment banks have played an increasingly prominent role in Hong Kong's IPO underwriting market. Among the 38 sponsoring institutions involved in Hong Kong IPOs this year, more than half are Chinese brokers. CICC, CITIC, and Huatai lead the rankings, significantly outpacing traditional foreign investment banks.
EY's recent report on the IPO markets in mainland China and Hong Kong predicts steady growth and structural deepening for Hong Kong's IPO market in 2026. Beyond the continued popularity of A+H listings, the return of U.S.-listed Chinese firms and specialized tech companies—particularly in AI and biotech—are expected to drive new listings.
Key highlights from Hong Kong's IPO market in the first 11 months include: 1. **Large IPOs as the Core Driver**: A-share companies contributed significantly, with one IPO raising over HKD 30 billion and seven exceeding HKD 10 billion. Six of the top 10 Hong Kong IPOs were A-share firms. 2. **Seasonal Trends**: IPOs peaked between March-June and September-November, accounting for over 70% of listings. 3. **Improved Returns and Lower Debut Slumps**: New listing rules boosted IPO performance, with average first-day returns reaching 38% (excluding SPACs and backdoor listings), while the slump rate dropped to a five-year low of 23.08%. 4. **Record Investor Participation**: Average oversubscription surged to 1,675x, with 29 companies exceeding 1,000x. Jinye International Group set a historic record with 11,465x oversubscription. 5. **Diverse Cornerstone Investors**: Sovereign wealth funds from the Middle East and Singapore participated for the first time, alongside institutional and retail investors.
Chinese brokers dominated underwriting, with CICC leading at 34 deals, followed by CITIC Securities (26) and Huatai Financial (18). Foreign banks like Morgan Stanley Asia ranked fifth with 11 deals, highlighting the growing dominance of Chinese institutions.
Looking ahead to 2026, EY expects sustained IPO activity in Hong Kong, supported by global liquidity improvements and southbound capital inflows. However, geopolitical risks, U.S.-China relations, and a potential delisting wave may pose challenges. The market is projected to focus on A+H listings, U.S.-listed Chinese firms, and specialized tech companies.
