Hong Kong IPO market ends strongly: six mainland companies listed together, raising USD 900 million in a single day

The Hong Kong stock market concludes its recovery year with a series of intensive listing activities.

On Tuesday, six companies from mainland China were listed in Hong Kong, raising a total of approximately HKD 6.99 billion (about USD 900 million). This not only solidifies Hong Kong's position as a major listing venue in Asia but also sets the tone for the market outlook in 2026.

According to data from the London Stock Exchange Group (LSEG), the total funds raised in Hong Kong through stock issuance (including initial public offerings and additional issuances) in 2025 is approximately USD 75 billion, more than three times that of 2024, marking the highest level since 2021. This data signifies Hong Kong's strong return to the global capital markets, re-establishing its leading position as a center for equity capital markets in Asia.

On Tuesday's debut, five of the six newly listed companies opened above their issue prices and generally maintained their upward momentum during the trading session, without significant fluctuations. This robust performance reflects a rebound in investor confidence, particularly against the backdrop of regulatory adjustments and ample liquidity, with the market remaining optimistic about technology-driven growth prospects. Market participants generally believe that this positive momentum will continue into 2026.

George Au, Deputy Sales Director at Phillip Securities, pointed out that this is the best year since the Ant Group IPO was shelved. He believes that the boom in margin lending, successful listings of companies like Mixue Ice Cream and CATL, and the adjustment of placement rules in August aimed at curbing excessive speculation by retail investors have collectively boosted market sentiment.

Divergent First-Day Performance: AI and Tech Stocks Lead

The six companies listed on Tuesday span various sectors, including artificial intelligence, software, industrial manufacturing, and consumer goods, with technology stocks standing out.

Generative AI drug development company INSILICO opened with an increase of about 45%, leading the new stocks. Software company 51 VISION opened nearly 15% higher, and industrial steel structure manufacturer MEILIAN saw an increase of over 15%. Additionally, high-end skincare brand LINQINGXUAN rose by about 9%.

The other two companies performed relatively steadily, with Lingce and Woan Robotics opening flat. George Au noted that as the year-end approaches, the market atmosphere remains good, with no obvious signs of cooling, and investors are currently exhibiting a more cautious and rational attitude.

New Stock Issuance Relay: Over HKD 9 Billion Projects Launched

Alongside the listing of the six companies, three other Chinese enterprises launched their share offerings in Hong Kong on Tuesday, adding over HKD 9.22 billion in financing scale to the Hong Kong IPO market, with these companies planning to list on January 8.

Specifically, Knowledge Graph Technology Co., Ltd. (i.e., ZHIPU AI) plans to issue 37.42 million H shares at a price of HKD 116.20 per share, aiming to raise HKD 4.35 billion. Chip manufacturer Shanghai Tianxu Zhixin Semiconductor will issue 25.4 million shares at HKD 144.60 each, raising HKD 3.67 billion. Surgical robot manufacturer Shenzhen Jingfeng Medical Technology Co., Ltd. plans to issue 27.72 million shares at a price of HKD 43.24 per share, raising approximately HKD 1.2 billion

Outlook 2026: Over 300 Companies in the Queue

The recent surge in IPO activities and new stock issuances highlights Hong Kong's recovery as an IPO hub. Currently, more than 300 companies have submitted listing applications, indicating that this momentum is expected to continue into 2026.

The market's next focus will be on the listing of Shanghai BIREN TECH Co., Ltd. scheduled for January 2. Analysts point out that the company's listing performance may set the tone for the market in 2026. Additionally, Shanghai Xiyu Technology in the artificial intelligence sector is also still in the pipeline for listing preparations. The listing applications from artificial intelligence and technology companies are dominating the market supply at the beginning of 2026.

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