Hong Kong Stock IPO fundraising surged tenfold at the start of the year, with 110 A-share companies lining up for Hong Kong listings

The hoofbeats of the primary market in Hong Kong stocks are stepping into an unprecedented, intense rhythm.

Data shows that as of February 24, 24 companies have completed IPOs in Hong Kong, raising a total of HKD 89.226 billion, ten times more than the same period last year, with IPO fundraising surpassing a quarter of last year’s total; on the other hand, there are currently 388 companies queued up for listing outside the Hong Kong Stock Exchange.

Meanwhile, driven by “tech New Year flavor” such as the Spring Festival Gala robot performances, AI concept stocks surged on the first trading day after the holiday as expected. Under this wave, is the upcoming Hong Kong stock market worth looking forward to? How exactly will the market move?

Total IPO fundraising is ten times that of the same period last year

Funds always flow toward more dynamic areas. Data shows that as of February 24, 24 companies completed IPOs in Hong Kong, a year-on-year increase of 166.67%, raising HKD 89.226 billion, up 1013.59%.

From the fundraising structure, the market has undergone a fundamental shift. The previously dominant financial and real estate sectors have quietly retreated, with artificial intelligence, semiconductors, and biomedicine becoming the main attractors of capital.

Among the top IPOs by fundraising since the beginning of the year, leading consumer giants like Muyuan Foods and Dongpeng Beverage remain prominent, but the more discussed phenomenon is the capital boom driven by the AI sector. AI companies such as Bairen Technology, Zhipu, and MINIMAX have gone public successively, each raising over HKD 5 billion, with first-day gains exceeding 50%, making them the most eye-catching IPOs at the start of the year.

In terms of investment banks, data shows that 24 brokerages participated in IPO sponsorships this year, with China International Capital Corporation (CICC) leading with 11 projects, accounting for 20.37% of the market share. Huatai International sponsored 5 projects, with a 9.26% share. UBS Securities and Morgan Stanley tied for third with 4 projects each. The remaining brokerages participated in 1-2 projects.

388 companies are queued, with nearly 30% being A+H shares

As many companies successfully list on the Hong Kong capital market, the “reserve army” of Hong Kong stocks continues to expand, demonstrating unprecedented market activity. According to data, as of February 24, 388 companies are waiting in line for Hong Kong listing.

A review by Caixin shows that among this large wave of listings, the structure of queued companies is undergoing profound changes, with three notable features worth attention.

Phenomenon 1: A-shares “scarce assets” accelerating into Hong Kong, nearly 30%. Data indicates that among the 388 queued companies, 110 are A-share listed companies, accounting for 28.4%. This trend has become especially prominent since last year, with more and more A-share assets with scarcity value and core competitiveness choosing dual listing in Hong Kong and A-shares. By 2025, 19 A-share companies including CATL and Seres have submitted applications to HKEX, with total fundraising accounting for 49% of Hong Kong’s total annual fundraising last year. Industry-wise, these companies mainly focus on high-end manufacturing and TMT sectors.

Phenomenon 2: New economy as the main force, led by information technology and healthcare. From industry distribution, technological innovation and consumer upgrading are the core drivers of this IPO wave. The information technology sector is the absolute “main character,” with 152 companies queued, accounting for 38.9%, highlighting Hong Kong’s attractiveness as a global financing hub for tech innovation companies. Following are healthcare companies, with 90 firms, making up 23.3%; daily consumer sectors rank third with 43 companies, 11.2%.

Phenomenon 3: Southeast Asian companies flocking in, with increasing international flavor. Notably, Hong Kong’s market is extending from mainland China to a broader global stage. According to data from LiveReport on listing applications and market information, over 10 international companies are currently queued, mainly from Southeast Asia. These companies operate across fintech, dining and retail, transportation services, and other hot sectors. The presence of overseas firms not only enriches the investment targets in Hong Kong stocks but also further consolidates Hong Kong’s role as a bridge connecting China and global capital.

At the Hong Kong Stock Exchange’s Spring Festival opening ceremony on February 20, CEO Charles Li shared an optimistic signal. Over the past few years, international attention on Asian markets has significantly increased. Whether at Davos or other international forums, HKEX’s popularity has grown each time. He analyzed that this reflects global investors’ active consideration of diversified asset allocation and growing interest in investing in Hong Kong, mainland China, and Asian markets. He stated that HKEX will continue to leverage these platforms to tell Hong Kong’s story positively.

Institutional outlook: Hong Kong stocks’ spring rally focusing on AI and domestic demand

After a period of adjustment, the Hong Kong stock market is now experiencing a convergence of positive factors. According to multiple institutional views, driven by external environment improvements, industry catalysts, and continuous capital inflows, the spring rally in Hong Kong stocks is worth期待. Among them, tech stocks, especially AI, are expected to be the most resilient sector in this round of market movement.

Huatai Securities states that during the Spring Festival, internal market differentiation increased, with AI newcomers diverging from internet giants. While consumer data showed highlights, it did not significantly boost sector performance, with gains mainly concentrated in technology and cyclical industries. In the short term, investors should be cautious of volatility around index and Hong Kong Stock Connect adjustments. For medium-term allocation, technology and cyclical materials remain clear main themes.

Industrial Securities’ overseas research team notes that with external environment improvements, industry catalysts, and significant capital inflows, Hong Kong stocks are likely to see a “spring movement” characterized by valuation recovery and growth resilience.

Externally, the IEEPA ruling as unconstitutional has sparked expectations of tariff framework restructuring, coupled with market optimism about Trump’s visit to China. Chinese assets’ risk premiums are expected to further decline, significantly boosting foreign investment willingness. On the capital side, the RMB’s stabilization and appreciation have enhanced asset attractiveness. Since early 2026, active foreign capital has seen five consecutive weeks of net inflows, reaching a recent high. Meanwhile, pre-holiday inflows via Stock Connect have returned to high levels, and domestic capital returning after the holiday is expected to provide solid support for the market.

Strategically, it is recommended to focus on “tech innovation + low-cycle recovery + dividend betas” for the spring rally. Among these, “tech innovation” is viewed as the most resilient in the short term, with the market possibly revisiting the IPO boom of new consumption and innovative drugs in 2025.

(Article source: Caixin)