Zheng Quan Shi Bao·2025-09-07 18:29Core Viewpoint - The Hong Kong stock market is experiencing a significant revival, with IPO activity returning to the forefront globally, driven by increased foreign investment in Chinese assets as they transition from being deemed "uninvestable" to "essential" [1][2][3]. Group 1: IPO Market Dynamics - The Hong Kong IPO market has seen a remarkable resurgence, with the total financing amount reaching HKD 137.5 billion by the end of August, marking a nearly sixfold increase compared to the same period in 2024 [4]. - Over 200 companies are currently in the pipeline for listing, with a significant portion being technology firms, indicating a robust supply of potential IPOs [3]. - The A+H listing model has been particularly successful, accounting for 70% of the total financing in the first half of the year [4]. Group 2: Foreign Investment Interest - There is a notable increase in foreign interest in Chinese assets, with many foreign investors actively seeking opportunities in the Hong Kong market [2][3]. - A significant portion of the subscriptions for new listings, especially in high-tech sectors, is coming from foreign investors, with some listings seeing up to 70% participation from overseas funds [3]. - The shift in perception among global investors regarding Chinese assets is evident, as they are now more inclined to consider them as viable investment options [3]. Group 3: Market Structure and Future Outlook - The Hong Kong Stock Exchange (HKEX) is committed to enhancing its market structure to better accommodate diverse investor needs and ensure a competitive edge [6]. - There is a recognition of the need to diversify product offerings beyond equities, particularly in fixed income and commodities, to compete effectively with other global markets [7][8]. - The integration of REITs into the Stock Connect program is in advanced preparation, which will further enrich the trading options available to investors [7].