Xin Lang Cai Jing·2025-07-04 12:02Core Viewpoint - The Hong Kong IPO market experienced a strong recovery in the first half of 2025, with 42 companies raising a total of HKD 1,067 billion, marking a 688% increase compared to the same period in 2024, and surpassing the total from 2022 to 2024 [1] Group 1: A to H Companies - Over 70 A-share companies have announced plans to list on the Hong Kong Stock Exchange since 2024, with 7 companies completing their IPOs in the first half of 2025, raising over HKD 770 billion, accounting for 72% of the total IPO amount [1] - The IPO issuance discount for A to H projects is positively correlated with company market capitalization, where larger A-share companies attract more investor interest, resulting in lower issuance discounts; for instance, CATL's Hong Kong issuance price was only 6.8% lower than its A-share price [1] - Despite the strong fundraising from A to H projects, the first-day drop rate reached 57%, with four companies experiencing a drop below their issuance price, including Haitian Flavoring and Sanhua Intelligent Control [1] Group 2: Industry Performance - The consumer discretionary sector emerged as the most active segment, with 7 IPOs raising HKD 105.7 billion, led by Mixue Ice City, which raised HKD 39.7 billion with a subscription rate of 5,258.2 times, freezing HKD 1.8 trillion [1] - The innovative drug sector, with 5 IPOs raising HKD 40.6 billion, became the most profitable segment, achieving an average increase of 78.4% since listing, with some companies like InnoCare Pharma and Brainhole achieving over 100% excess returns [1] - The industrial materials sector, along with information technology and finance, showed a downturn, contributing only 19 IPOs, which accounted for 45.2% of the total, but with a significantly lower actual fundraising scale [1]