Core Insights - The Hong Kong IPO market has been active in 2025, with 78 new stocks listed and a total fundraising amount of HKD 210.63 billion, representing a year-on-year increase of 200.7% [1] Group 1: Role of Sponsoring Institutions - The core concept of the sponsorship system is that sponsors (usually brokers) recommend and assist issuers in issuing securities, verifying the authenticity, accuracy, and completeness of the information in the issuance documents [3] - The essence of the sponsorship system is to establish a "joint liability mechanism," making the sponsoring institution a bridge between the issuer, regulatory bodies, and investors [4] - Sponsors play multiple critical roles throughout the IPO process, including verifying information and ensuring compliance [5] Group 2: Responsibilities of Sponsoring Institutions - The primary responsibility of sponsors is to verify the information in the issuer's documents, including financial statements, business models, and risk factors, ensuring transparency in the issuance and listing process [6] - Sponsors assist companies in improving their governance structure and market competitiveness before and after listing, ensuring compliance is crucial for newly listed companies [7] - Sponsors serve as the main communication channel with the Hong Kong Stock Exchange, explaining and implementing regulatory requirements while enhancing investor confidence through their professional reputation [8] Group 3: Choosing the Right Sponsoring Institution - Companies should consider their characteristics and needs when selecting a sponsoring institution [9] - Key criteria for choosing a sponsoring institution include verifying the necessary licenses, such as the sixth category license required by the Hong Kong Securities and Futures Commission [10] - The degree of communication and cooperation is a critical soft skill when selecting a sponsor, as highlighted by the CEO of the Hong Kong Stock Exchange [11] Group 4: Market Practices of Baihui Financial Holdings - Baihui Financial Holdings has participated in several IPO projects, showcasing its expertise in sponsorship services, including the successful listing of Jinye International Group, which saw an oversubscription of 11,460 times and a first-day price increase of 330% [12] - Another example includes the listing of Different Group, which was oversubscribed by approximately 3,316.5 times, reflecting market recognition and the execution capabilities of the intermediary team [12] Group 5: Factors for Selecting a Sponsoring Institution - Industry expertise and experience, including prior experience in listing companies within the same industry [13] - Successful case studies and market reputation, assessing the institution's experience and success in Hong Kong listings [13] - Distribution capabilities and investor networks, ensuring the institution has mature issuance channels [13] - Ongoing service capabilities, providing support for post-listing operations [13]