Core Viewpoint - The Hong Kong IPO market is experiencing a significant surge in activity, with 22 companies completing IPOs since the beginning of 2026, raising a total of over 67.5 billion HKD, marking a new high for the same period in the last five years [1][2]. Group 1: IPO Market Dynamics - The participation of cornerstone investors has increased significantly, with 19 out of 22 IPOs involving cornerstone investors, achieving a coverage rate of 86.4%, compared to 68% in 2025 [2]. - The average number of cornerstone investors per company has reached 12.74, setting a record for the highest monthly average in Hong Kong IPO history [2]. - The preference of cornerstone investors is concentrated in the information technology and industrial sectors, with 10 technology firms and 5 industrial firms attracting significant interest [2]. Group 2: Notable IPOs and Investor Participation - Notable companies like 澜起科技 (Lianqi Technology) and 先导智能 (Xian Dao Intelligent) have attracted substantial investments from cornerstone investors, with 澜起科技 raising 69.05 billion HKD and 先导智能 raising 49.3 billion HKD [3][4]. - International institutions account for over 60% of cornerstone investors in 先导智能, indicating strong international confidence in China's high-end manufacturing sector [3]. - The involvement of global long-term funds, such as QIA and BlackRock, in cornerstone investments reflects a shift in international investor behavior towards active participation in the Hong Kong market [4]. Group 3: Market Pricing and Mechanisms - The use of the green shoe option has increased, with 10 out of 22 IPOs implementing this mechanism, slightly above the 35% average from 2025 [5]. - Seven companies have fully exercised their green shoe options within 30 days post-IPO, indicating strong market support for high-growth technology and biotech firms [5][6]. - Companies that opted not to use the green shoe mechanism, such as 先导智能 and 爱芯元智, demonstrated confidence in their valuations, with a 77% first-day price increase probability, surpassing the 60% of those that did use the mechanism [6]. Group 4: Future Outlook - The IPO market in Hong Kong is projected to exceed 300 billion HKD in financing and see 150 to 200 new listings in 2026, driven by the rising value of Chinese enterprises and the demand for diversified global investments [7]. - The current favorable IPO performance is creating a positive feedback loop with market valuation advantages, enhancing overall liquidity and providing a conducive environment for companies in emerging sectors like new consumption and biotechnology [7].

Group 1 - The Hong Kong IPO market has seen a phenomenon of zero first-day price drops this year, with 22 new stocks listed, all maintaining their issue prices on the first day [1] - The overall quality of new stocks has improved, with many companies being leaders in their respective niche markets, such as AI and semiconductors [1] - Reasonable pricing strategies have allowed for sufficient room for first-day performance, as seen with companies like 澜起科技, which had a significant discount compared to its A-share price [1] Group 2 - The cornerstone investor mechanism has played a crucial role in stabilizing stock prices, with all 22 new stocks this year receiving subscriptions from cornerstone investors, including major sovereign funds and asset management giants [2] - The investment amount from cornerstone investors in January 2026 reached 18.521 billion HKD, a significant year-on-year increase of 13.3 times [2] - The Hong Kong Securities and Futures Commission has emphasized the importance of IPO quality, aiming to shift the market focus from quantity to quality, which is expected to enhance the overall qualifications of listed companies [2]

香港交易及結算所有限公司、香港聯合交易所有限公司（「聯交所」）及香港中央結算有限公司 （「香港結算」）對本公告的內容概不負責，對其準確性或完整性亦不發表聲明，並明確表示概不 會就因本公告全部或任何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 本公告不得直接或間接於或向美國（包括其領土及屬地、美國任何州以及哥倫比亞特區）發佈、 刊發或派發。本公告並不構成或組成在美國境內或於任何其他司法權區購買或認購發售股份的 任何要約或招攬的一部分。發售股份並無亦不會根據《1933年美國證券法》（經不時修訂）（「美 國證券法」）或美國任何州或其他司法權區的證券法登記。發售股份不得在美國境內提呈發售、 出售、質押或以其他方式轉讓，除非已根據美國證券法的登記規定獲豁免，並已符合任何州的 適用證券法。發售股份根據美國證券法S規例在美國境外向非美籍人士投資者或並非為美籍人 士或為其利益進行收購的投資者提呈發售及出售。發售股份不會在美國公開發售。 本公告僅作說明用途，並不構成收購、購買或認購證券的邀請或要約。本公告並非招股章程。 潛在投資者於決定是否投資所提呈發售的H股前，應閱覽兆易創新科技集團股份有限公司（「本 公司」 ...

Core Viewpoint - The Hong Kong Stock Exchange (HKEX) aims to avoid post-IPO price drops by implementing a multi-faceted strategy focusing on reasonable pricing, market conditions, fundamental support, investor communication, and mechanism design [1][3]. Group 1: Pricing Strategy - Reasonable pricing is essential to prevent overvaluation, as institutional investors dominate the Hong Kong market (over 70% share) and are sensitive to valuation discrepancies [3]. - Dynamic pricing adjustments should be made based on institutional feedback, with the option to lower the offering price if market demand is insufficient [4]. - Avoid excessive packaging of financials by focusing on sustainable profitability metrics, such as net profit margins and free cash flow [4]. Group 2: Market Timing and Conditions - Timing the IPO to avoid market downturns is crucial, as the Hong Kong market is significantly influenced by global liquidity, geopolitical factors, and mainland economic expectations [3]. - The macroeconomic environment, including U.S. Federal Reserve policies and currency exchange rates, should be closely monitored, as they impact risk assets and investor sentiment [4]. Group 3: Fundamental Support - Strengthening the company's fundamentals through clear business models, competitive advantages, and growth narratives is vital for convincing institutional investors [3]. - Highlighting the company's uniqueness and scarcity in its niche market can enhance its appeal, especially if it possesses technological barriers or leading market shares [4]. Group 4: Investor Communication - Effective communication with long-term investors, such as sovereign funds and pension funds, is necessary to attract stable capital rather than short-term speculators [3]. - Tailored communication strategies should be developed for different types of investors, focusing on liquidity for hedge funds and long-term returns for mutual funds [4]. Group 5: Mechanism Design - Utilizing mechanisms like the green shoe option allows underwriters to issue additional shares post-IPO to stabilize the stock price if it drops below the offering price [6]. - Establishing a price stabilization agent can help manage stock prices during downturns, but the effectiveness depends on the agent's financial strength and willingness to act [6]. - Controlling the issuance structure and scale is important to prevent excessive dilution and ensure sufficient liquidity, particularly for smaller IPOs [6].

Core Viewpoint - The article discusses the surge in IPO applications from pharmaceutical companies in Hong Kong, highlighting the competitive landscape and the challenges faced by these companies in securing investors amid a crowded market [3][5][10]. Group 1: IPO Market Dynamics - As of November 14, 2023, 23 healthcare companies have successfully listed on the Hong Kong stock market this year, compared to only 8 in the same period last year [3]. - Over 40 healthcare companies have applied for IPOs in Hong Kong this year, with 8 applications submitted in just the first half of November [3]. - The increase in IPO applications has led to heightened competition among companies to attract suitable investors, resulting in a more complex negotiation landscape between companies and institutional investors [3][5]. Group 2: Case Study of Baillie Gifford - Baillie Gifford's planned global offering was delayed due to market conditions, with reports suggesting that investor demand did not meet expectations [4][5]. - The company aimed to attract long-term value investors rather than those focused on short-term price fluctuations, indicating a strategic approach to its IPO [5][6]. - The IPO process involves cornerstone placements, book-building, and public offerings, with cornerstone investors playing a crucial role in validating the company's value [6]. Group 3: Market Sentiment and Trends - The pharmaceutical sector has seen significant stock price increases this year, leading investors to focus on new IPOs rather than existing stocks [7]. - The introduction of new IPO pricing mechanisms by the Hong Kong Stock Exchange has increased the participation of cornerstone investors in pharmaceutical IPOs [9]. - Despite a recent cooling in the secondary market, the enthusiasm for IPO applications remains strong, with expectations of multiple companies going public in the first quarter of the following year [10][11]. Group 4: Investment Focus Areas - Certain sectors within the pharmaceutical industry, such as siRNA and ADC drugs, are attracting more attention from investors, indicating a trend towards specialized investment opportunities [11]. - The competition among major pharmaceutical companies for acquisitions, particularly in the GLP-1 drug space, has heightened interest in related IPOs [11]. - The article notes that while many IPOs are being pursued, the quality of the offerings and their pricing will be critical in attracting investor interest [13].

Group 1 - Institutional investors play a crucial role in the IPO process on the Hong Kong Stock Exchange, influencing pricing, market confidence, and post-listing liquidity [2][3] - The typical structure of an IPO consists of a public offering (10%) and an international placement (90%), with a mechanism to adjust allocations based on demand [2][3] - Cornerstone and anchor investors are key participants, with cornerstone investors committing to purchase shares before the roadshow, providing market endorsement [5][6] Group 2 - The pricing mechanism is driven by an institutional-led bookbuilding process, where institutional investors' expertise and capital size help determine the final issue price [3][4] - Lock-up periods for cornerstone investors are typically six months, with additional restrictions for major shareholders, ensuring stability and reducing short-term speculation [4][5] - The selection criteria for institutional investors emphasize qualifications, background, and synergy with the issuer, ensuring a stable and supportive investor base [6] Group 3 - Transparency and information disclosure are critical, with requirements for revealing details about cornerstone investors and the allocation results of international placements [6] - The Hong Kong Stock Exchange's unique features include a globalized investor base and a market-driven pricing mechanism, allowing for flexible adjustments based on market conditions [6] - The green shoe option allows underwriters to request additional purchases from institutional investors to stabilize post-listing share prices, enhancing market confidence [6]

Group 1: Core Value of Cornerstone Investors - Cornerstone investors focus on the long-term value of a company's fundamentals, emphasizing sustainable profitability and core competitiveness [2] - They prioritize the clarity and scalability of the business model, as well as the financial health and profit outlook of the company [2][4] Group 2: Industry Outlook and Competitive Landscape - The Nasdaq market favors high-growth industries such as technology, biotechnology, new energy, and consumer technology, with cornerstone investors assessing industry ceilings and growth potential [3] - Companies' competitive positions and the regulatory risks they face are also critical factors for cornerstone investors [3] Group 3: Valuation and Market Expectations - Cornerstone investors evaluate whether the offering price reflects the company's true value, considering valuation benchmarks and market sentiment [5] - They also assess the future capital operation space, including any refinancing plans and whether the current valuation allows for future appreciation [5] Group 4: Management Team and Governance Structure - The background of the founding and management team is crucial, with investors examining their execution capabilities and the transparency of the governance structure [6][8] - The alignment of interests between management and the company’s long-term goals is also a key consideration [6] Group 5: Strategic Synergy and Resource Empowerment - Some cornerstone investors, particularly strategic institutions, focus on potential business synergies and the ability to provide customer resources, technical collaboration, or market channel support [9] Group 6: Risk Mitigation and Exit Strategies - Despite lock-up periods, cornerstone investors evaluate potential risks and exit strategies, including down-side risk protection and future liquidity of the company's stock post-IPO [9]

Group 1 - Cornerstone investors are officially recognized institutional investors in Hong Kong IPOs, committing to purchase a certain number of shares at the offering price before the IPO starts, enhancing market confidence and stabilizing demand [2][5] - Anchor investors are not officially defined by the Hong Kong Stock Exchange but are large institutional investors who place orders early in the bookbuilding phase, helping underwriters determine pricing and generate market interest [3][6] Group 2 - Cornerstone investors have a mandatory lock-up period of at least 6 months to prevent short-term selling, and their commitments are legally binding [4][5] - Anchor investors typically do not have a mandatory lock-up period, allowing them to trade shares immediately after listing unless otherwise agreed [8][10] Group 3 - Information disclosure for cornerstone investors is mandatory, requiring detailed disclosure in the prospectus, including investor names, subscription amounts, and lock-up periods [5][10] - Disclosure for anchor investors is non-mandatory, depending on the issuer or underwriter's discretion, leading to potential information ambiguity [10][11] Group 4 - The core function of cornerstone investors is to provide credit endorsement and subscription support, which can influence the IPO pricing and reduce the risk of insufficient demand [10][11] - Anchor investors primarily assist in pricing and market preheating, with their early large subscriptions helping underwriters gauge market demand [10][11] Group 5 - Cornerstone investors are typically long-term institutions such as sovereign funds and asset management companies, while anchor investors are often short-term trading institutions like hedge funds [11]

Group 1: Core Insights - The Hong Kong IPO market is experiencing a recovery, with significant increases in fundraising and a decrease in the first-day loss rate, driven by both internal and external factors [2] - Small-cap stocks show strong first-day performance but tend to decline rapidly thereafter, indicating the importance of early profit-taking [5] - The performance of mid-to-large-cap stocks remains stable initially but may experience significant corrections after six months due to lock-up expirations [4][6] Group 2: Market Dynamics - As of August 11, 2025, the total IPO amount reached HKD 129.2 billion, representing a 147% increase compared to the entire year of 2024, with an average fundraising size of HKD 2.4 billion, the highest since 2022 [2] - The first-day average return for IPOs is 15.1%, with a median return of 3.4%, marking the lowest first-day loss rate since 2018 at 28% [2] - The recovery in the IPO market is attributed to the Hong Kong Stock Exchange's continuous optimization of listing rules, encouragement from mainland China for companies to list in Hong Kong, tightening of financing in A-shares, and increased regulatory scrutiny on Chinese concept stocks in the U.S. [2] Group 3: Investor Sentiment and Strategy - Public investor sentiment plays a crucial role in the performance of small-cap stocks, with stronger sentiment leading to better returns, especially when the clawback mechanism is not triggered [5] - For mid-to-large-cap stocks, the absolute median return remains around zero in the first three months, suggesting the need for careful selection of projects [5] - The presence of cornerstone investors does not significantly influence the performance of IPO projects in the medium to long term, highlighting the importance of in-depth research on individual stocks [6]

Group 1 - The investment atmosphere in Hong Kong is improving, with over 300,000 subscriptions for some new IPOs, and foreign capital participation in IPOs has increased from less than 20% to 28% compared to previous years [1] - Long-term investors, such as overseas pension funds and sovereign wealth funds, are showing increased interest in Hong Kong IPOs, leading to more stable post-IPO performance for many companies [1] - The competitive landscape in various industries is intense, but industry leaders with better capital, resources, and operational efficiency are expected to gain larger market shares through consolidation [1] Group 2 - Excluding SPAC listings, Hong Kong's IPO financing in the first half of the year reached $14.1 billion, surpassing the Nasdaq and NYSE [2] - Major IPOs like CATL raised HKD 41 billion, while other companies like Hengrui Medicine and Haitian Flavor & Fragrance also raised over HKD 10 billion, but the average scale of IPOs this year is still below the levels seen from 2019 to 2021 [2] - The current pipeline of companies applying for IPOs is not particularly large, suggesting a gradual increase in total fundraising rather than a sudden spike, which is viewed positively for market liquidity [2]