Hong Kong equities' IPO scale has exceeded HKD 100 billion year-to-date, with a year-over-year increase of over 500%

● Staff Reporter Hu Yu

As two new stocks listed on the Hong Kong stock market on March 24, the scale of listed companies in Hong Kong has expanded again. Wind data shows that in less than three months since 2026, the financing amount in the Hong Kong IPO market has surpassed HKD 100 billion, a more than 500% increase compared to the same period last year. Looking at individual stocks, the number of “tech” companies among the 34 newly listed stocks has also significantly increased, with many from the semiconductor, software, and related industries.

Notably, unlike the synchronized upward trend in both primary and secondary markets in 2025, the Hong Kong secondary market has experienced volatility and a pullback this year, not aligning with the hot primary market. Industry insiders believe that the impact of Middle Eastern geopolitical conflicts on global risk assets has not been fully eliminated. In the short term, Hong Kong stocks are emphasizing risk prevention, and aside from value dividend sectors, continued attention to the new energy sector is recommended.

Breaking the HKD 100 billion mark in less than three months

On March 24, Zijing Holdings and Kalesi Technology both listed on the Hong Kong stock market. According to data, Zijing Holdings’ main products include W-HUD, AR-HUD, CMS, transparent A-pillars, transparent car window displays, and other intelligent cockpit-related products. Kalesi Technology is a comprehensive provider of intelligent on-site logistics robots, aiming to redefine supply chain operations through advanced robotics technology.

Since 2026, the overall momentum of the Hong Kong IPO market has continued the hot trend from 2025, with new stock financing significantly higher than the previous year and surpassing HKD 100 billion.

Wind data shows that as of March 24, the number of new Hong Kong-listed stocks this year has reached 34, with a total IPO financing of HKD 104.49 billion. The number of new stocks has increased by 161.54% compared to 13 in the same period last year, and the financing amount has surged by 551.89% from HKD 16.02 billion. In 2025, a total of 117 new stocks were listed, raising HKD 286.91 billion. In less than three months of 2026, the number of new listings already accounts for nearly 30% of the total for 2025, and the financing amount accounts for 36.42% of the full-year total.

Looking at individual stock financing scales, two stocks—Muyuan Foods and Dongpeng Beverage—each raised over HKD 10 billion, with amounts of HKD 12.10 billion and HKD 11.10 billion respectively. There are 23 stocks with financing over HKD 10 billion, compared to only four in the same period last year, with the highest single-stock financing not exceeding HKD 4 billion.

Regarding industry distribution, in 2025, consumer companies like Mixue, Guming, and Blueko played leading roles. Since 2026, the proportion of “tech” companies among new listings has increased significantly: among the 34 new stocks listed since 2026, six are from the semiconductor industry—tied for first with the industrial engineering sector. Notable companies include Lankeng Technology, GigaDevice, and OmniVision, all star enterprises from A-shares. Additionally, four stocks are from the software industry, and two from the information technology equipment sector, all representing tech growth styles.

Two major factors triggering market adjustments

Although new stocks listed since 2026 have shown fewer cases of debut declines and some have doubled their IPO prices on the first day, the overall Hong Kong secondary market has not continued the rally seen in 2025, with the Hang Seng Tech Index experiencing more pronounced corrections.

Wind data shows that as of March 24, the Hang Seng Index and the Hang Seng China Enterprises Index have declined by 2.21% and 4.65% respectively this year, while the Hang Seng Tech Index has fallen by 12.42%.

What has caused the adjustment in Hong Kong stocks, especially in the tech sector? Dongwu Securities’ Chief Overseas Strategist Chen Meng believes that amid Middle Eastern geopolitical conflicts, the destruction of refineries in Iran, Qatar, and Kuwait has kept crude oil prices high, and the Federal Reserve’s hawkish stance has suppressed market liquidity. Additionally, major Hong Kong stocks like Tencent Holdings and Alibaba-W are entering periods of large AI investments, raising concerns that increased capital expenditure may squeeze short-term profits, putting pressure on tech stocks.

Huatai Securities Research Institute strategist Li Yujie thinks that the impact of Middle Eastern conflicts on global risk assets has not been fully eliminated. For Hong Kong stocks, the short-term focus should be on risk prevention. However, from a medium- to long-term perspective, these conflicts have catalyzed three demand growth points: energy transition needs, US dollar settlement and reserve substitution, and the demand for safe international capital retention. Hong Kong stocks are positioned at the intersection of these three demands and could benefit from fundamental stabilization and the gradual appreciation of the RMB amid long-term structural changes. “If the relevant supporting infrastructure can be quickly completed and preparations made, Hong Kong has the opportunity to seize current new development opportunities.”

Waiting for clearer catalysts before left-side positioning

From the capital flow perspective, recent reports suggest that Middle Eastern funds continue to buy Hong Kong stocks, which is seen as a way to diversify sources of incremental capital and boost the market. Gao Feng Securities’ Chief Strategist Liu Chenming states that current interest rates, exchange rates, and foreign capital flows do not show signs of systemic risk aversion shifts. Middle Eastern funds are likely mainly cornerstone investors in Hong Kong IPOs, participating primarily in primary market cornerstone investments, with strategic rather than short-term risk-hedging motives.

Li Yujie believes that short-term risk-averse capital entering Hong Kong does not immediately translate into buying Hong Kong stocks. This should be viewed objectively. In the medium to long term, increased foreign capital inflow can expand Hong Kong’s monetary base, improve market liquidity, and reduce liquidity risk premiums. Structurally, capital and personnel flows can boost demand for Hong Kong’s commercial real estate, wealth management, and insurance services. Industry-wise, sovereign funds may prefer core sectors aligned with Middle Eastern strategic interests, such as digital economy, new energy, high-end manufacturing, and healthcare, which have long-term growth potential and transparency. Private wealth investors may favor high-dividend stocks.

Regarding Hong Kong’s short-term outlook, Liu Chenming believes late March could be a window for observation. If market sentiment improves in mid to late March, focus could shift to the Hang Seng Tech Index and Hong Kong Stock Connect internet sectors. If liquidity tightening exceeds expectations later, dividend-paying sectors may present opportunities.

Chen Meng notes that the valuation of the Hang Seng Tech Index has already declined significantly, but cautious left-side positioning is advised, waiting for clearer catalysts. Given the high risk of short-term market volatility, a defensive approach is recommended, with continued focus on the new energy sector beyond value dividends.