Changjiang Securities·2025-06-20 01:10Group 1: Market Recovery - The Hong Kong IPO market has significantly rebounded since Midea Group's "A+H" listing in September 2024, with a strong recovery trend observed[3] - The probability of newly listed Hong Kong stocks rising on their first day is 62.1%, and the probability of them being up after 30 days is 55.6%[6] - The fundraising amount in the Hong Kong IPO market from January to May 2025 has surged by 709.4% year-on-year, nearing the total for the entire year of 2024[20] Group 2: Driving Factors - The core drivers of the Hong Kong IPO market's resurgence in 2025 include policy incentives, increased market attractiveness, and inherent corporate financing needs[7] - The China Securities Regulatory Commission has introduced five measures to encourage mainland companies to list in Hong Kong, significantly lowering the listing threshold[28] - The Hong Kong market's performance has been strong, with a higher proportion of "new economy" sectors, making it more attractive compared to A-shares[35] Group 3: Investment Strategies - Strategy one focuses on the opportunities presented by leading companies listing in Hong Kong, as A-share companies tend to see significant price increases prior to their Hong Kong listings[8] - Strategy two emphasizes the potential for price increases for companies entering the Hong Kong Stock Connect, particularly in sectors like power equipment and defense[9] - Companies such as Heng Rui Medicine and Ningde Times have shown positive stock performance in A-shares leading up to their Hong Kong listings, indicating a favorable trend[25]