Jin Rong Shi Bao·2026-01-14 13:24Core Insights - Hong Kong Stock Exchange (HKEX) regained the top position globally in IPO fundraising in 2025, completing 119 listings with a total fundraising amount of HKD 285.8 billion [1] Group 1: Factors Driving IPO Success - The resurgence of Hong Kong's IPO market is attributed to multiple factors, including strong capital market performance, increased attractiveness of Chinese assets, and rising international allocation demand [1] - Mainland enterprises played a crucial role, with 111 companies successfully listing in Hong Kong, raising a total of HKD 228.6 billion, accounting for 94% of new listings and 88% of total fundraising [2] - Improved market liquidity, enhanced domestic asset attractiveness, and a favorable policy environment contributed to the IPO boom, as noted by UBS executives [2] Group 2: International Investor Engagement - Increased attention from international investors significantly impacted the IPO landscape, with many re-entering as cornerstone investors and forming teams to study Chinese market opportunities [3] - Hong Kong's unique capital market positioning, backed by China and its connectivity mechanisms, serves as a vital gateway for international capital entering China and for domestic companies connecting with global investors [3] Group 3: Outlook for 2026 - The momentum in the Hong Kong IPO market is expected to continue into 2026, with 11 companies already listed in early January 2026, raising HKD 33.1 billion [4] - HKEX aims to leverage its advantages, such as the unique connectivity with mainland markets and a diverse, liquid market, to attract more listings and meet global investor needs [4] - The IPO market in 2026 is anticipated to exhibit characteristics of globalization, diversification, and high-quality reforms, driven by the rapid development of Chinese enterprises and global investor demand [5] Group 4: Market Trends and Innovations - Globalization of Chinese enterprises is evolving from product export to comprehensive brand and capital structure strategies, which will drive IPOs and cross-border mergers [5] - The Hong Kong market is witnessing a diversification of industries, including new consumption, AI technology, and healthcare, along with a mix of established and emerging companies seeking listings [5] - Innovations in financing, such as convertible bonds, are expected to become more flexible, while the focus on fundamental company performance and governance is leading to lower IPO failure rates [5]