Xin Lang Cai Jing·2026-01-16 09:30Group 1 - The core viewpoint of the article highlights the strong recovery of the Hong Kong IPO market in 2025, with 114 companies completing listings and raising a total of 285.6 billion HKD, making it the largest IPO fundraising exchange globally [1][13] - The average first-day gain for newly listed companies was 37%, significantly higher than the previous year's 8%, although over 40% of the projects experienced a first-day drop [1][13] - The green shoe mechanism, typically intended to stabilize new stock prices, showed limitations in 2025, with a first-day drop rate of 42%, and projects with green shoes had a higher drop rate of 48% compared to 22% for those without [1][15] Group 2 - The execution of the green shoe mechanism is closely tied to market demand, as it is allocated to non-anchor institutional investors, leading to a higher drop rate for projects with green shoes when demand is insufficient [3][15] - The strategy of green shoe funds typically involves controlling price declines rather than immediate full support, with concentrated buying near the market close to achieve a favorable closing price [3][15] - The performance of market stabilizers, such as CICC, showed a 44% drop rate based on intraday lows, which narrowed to 30% based on closing prices, indicating the effectiveness of their strategy [9][18] Group 3 - There is a notable difference in the green shoe execution strategies between Chinese and foreign institutions, with foreign investment banks generally exhibiting higher drop rates, such as Goldman Sachs at 75% and Morgan Stanley at 58% [6][20] - Chinese investment banks, such as CICC and CITIC Securities, reported lower drop rates of 41% and 25% respectively, indicating better performance among leading underwriters [6][20] - The average minimum drop for projects under Chinese investment banks was significantly higher, ranging from 14% to 32%, compared to 6% to 12% for foreign banks, highlighting greater volatility in the former's projects [10][22]