Sou Hu Cai Jing·2025-11-06 04:51Core Insights - The Hong Kong IPO market has surpassed 200 billion HKD, reaching 2164.74 billion HKD, marking a significant recovery since 2021 [1][3] - The ongoing IPO boom is expected to continue, with many companies waiting to go public in the coming months [1][3] IPO Market Performance - The peak years for Hong Kong IPOs were from 2019 to 2021, with annual IPO volumes exceeding 300 billion HKD. In contrast, the market faced a downturn from 2022 to 2024, with 2023 seeing IPO volumes below 50 billion HKD [3] - Since 2025, the IPO market has rebounded, with major listings such as CATL raising 41 billion HKD, the largest IPO globally this year [3][4] Investor Sentiment and Market Dynamics - The average return for newly listed companies in the first trading day is approximately 38%, with a one-month return of 36% and a three-month return of 60%, significantly higher than the average returns of the past five years [4] - The IPO market has seen record-breaking subscription amounts, with Mxue Group's subscription reaching 1.77 trillion HKD, surpassing previous records [3] External Investment Trends - There is a notable influx of foreign capital into the Hong Kong market, driven by the demand for diversified investments and the recent easing of interest rates by the Federal Reserve [7] - The return of Chinese concept stocks is anticipated to contribute to the IPO volume, as these companies seek to list in Hong Kong due to regulatory advantages and investor familiarity [10] Regulatory Environment and Future Outlook - The Hong Kong Stock Exchange has implemented reforms to streamline the IPO process, reducing approval times and enhancing the attractiveness of the market for new listings [9] - With nearly 300 companies preparing for IPOs, the market is expected to maintain its momentum, supported by a favorable regulatory environment and strong demand from both local and foreign investors [9][10]