Zhong Guo Ji Jin Bao·2025-06-12 04:11Core Insights - International long-term capital interest in Chinese assets is rising despite U.S. tariff policies, with significant demand for Hong Kong IPOs, particularly in consumer and technology sectors [1][4][6] Group 1: International Capital and IPO Market - Goldman Sachs has been a leader in overseas stock capital market financing for Chinese issuers since 2025, holding a market share of 21.7% [1] - The Hong Kong IPO market has shown remarkable performance, with 2024 financing reaching $11.3 billion, a 92% increase from $5.9 billion in 2023, and an expected $13 billion in the first half of 2025 [3][6] - The participation of international long-term investors in IPOs has significantly increased, with some projects seeing over 20 international funds involved, compared to 3-5 in previous years [6] Group 2: Market Recovery and Economic Factors - The Hong Kong market has experienced a three-phase performance in 2024, including a strong recovery in Q1 with a 17% rise in the Hang Seng Index, followed by a brief downturn in April, and a rebound in May and June, leading to a cumulative increase of 22% for the year [3][4] - The average return for IPOs in Hong Kong in 2025 is projected to be 37%, with 70% of projects achieving positive returns, compared to only 40% in 2024 [8] - The recovery of the market is attributed to favorable Chinese economic policies, technological advancements, and a high willingness of companies to list in Hong Kong, with 44 A-share companies already announced for listing [7][8] Group 3: Global Capital Rebalancing - The return of international capital to Hong Kong is part of a broader trend of global asset rebalancing, with investors diversifying away from the U.S. due to perceived overvaluation of the dollar [7] - The daily trading volume in the Hong Kong market has increased from approximately HKD 100 billion in 2024 to between HKD 200 billion and 300 billion in 2025, with 70% of this volume attributed to international funds [6][7] - Despite short-term fluctuations due to trade tensions, the successful issuance of large projects post-tariff adjustments indicates strong long-term confidence in the Chinese market [8]