Group 1 - The article discusses the "套路回拨" mechanism in Hong Kong IPOs, which is a joint operation by issuers, sponsors, book managers, and institutions to manipulate the share allocation between public offerings and international placements to reduce retail investors' chances of winning shares and concentrate holdings for easier speculation by major players [1] - The article outlines the typical allocation ratios for the public offering and international placement based on the subscription multiples, indicating that when the public offering subscription multiple is between 15-50 times, the public offering allocation increases to 30%, while the international placement decreases to 70% [2] - A statistical analysis of new stocks since 2024 shows that there have been 24 instances of "套路回拨," with all dark market performances increasing, and on the first trading day, there were 21 stocks that rose, 1 that remained flat, and 2 that fell [3]

Group 1 - The Hong Kong stock market has seen a surge in investment opportunities this year, with a notable increase in IPO activities, as evidenced by a 720% increase in fundraising in the first five months [1] - As of June 16, 31 new stocks have been listed in Hong Kong this year, with 18 experiencing positive returns on their first trading day, while 9 stocks faced a decline, resulting in a 29% failure rate, which is a significant decrease compared to the previous two years [1] - The stock "Ying En Biological" recorded a remarkable first-day increase of 116.7%, indicating potential profits of around HKD 10,000 for investors who subscribed to one lot [1] Group 2 - As of May 30, there are 158 companies in the "processing" status for IPO applications, with approximately 60 companies announcing or applying for dual listings in both A and H shares [2] - The recent strong performances of companies like CATL, 恒瑞医药, and 吉宏控股 have attracted significant attention and investment in A+H new stocks [2] Group 3 - The IPO process in Hong Kong requires investors to have a Hong Kong bank account and a securities account, as A-share accounts cannot participate in Hong Kong IPOs [6] - The typical IPO process involves a 30-day period for the company to open the subscription process after passing the Hong Kong Stock Exchange hearing, with the subscription period lasting 3 to 6 days [7] - The distribution mechanism for public offerings divides investors into two groups: Group A (small investors) and Group B (large investors), with shares allocated equally between the two groups [13] Group 4 - The "return mechanism" allows for a portion of shares initially allocated to international placements to be reallocated to public offerings when demand is high, which can significantly increase the chances of winning shares for retail investors [9] - Historical data shows that companies with a "return mechanism" tend to perform better on their first trading day, with a lower failure rate [10][11] Group 5 - The average subscription multiple for new stocks in Hong Kong has reached 148 times this year, the highest since 2019, indicating strong market interest [21] - Factors influencing the success of IPOs include the reputation of the underwriter, the presence of cornerstone investors, and the green shoe mechanism, which helps stabilize stock prices post-IPO [20][21]

Core Viewpoint - The Hong Kong IPO market has shown signs of recovery since 2025, with a notable increase in investor participation, although the performance of newly listed stocks has been mixed, as evidenced by the case of New Qi An [1][3]. Group 1: Market Performance - As of June 10, 2025, 32 companies have listed on the Hong Kong main board, with 9 of them (28.13%) experiencing a drop in share price on their first trading day, compared to 36.8% for the entire year of 2024 [1]. - New Qi An's stock price surged by 72.49% in the dark market before its listing, but it opened at a 60.05% premium and closed the first day with a gain of only 21.43% [1][3]. - On the second trading day, New Qi An's stock price fell to 17.76 HKD, dropping below its issue price of 18.9 HKD, marking a decline of approximately 6% [3]. Group 2: IPO Structure and Allocation - New Qi An's IPO involved issuing 10,585,400 shares, with 10% allocated for public sale and 90% for international placement. However, the public offering was oversubscribed by 149.37 times, while the international placement was only 0.93 times [5][6]. - The actual allocation for public sale was only 15.7%, significantly lower than the expected 50% due to a "routine reallocation" strategy, indicating a preference to keep shares concentrated among a few investors [5][6]. - The top three underwriters hold 60.52% of the actual tradable shares, suggesting a high concentration of ownership that could influence stock price movements [7][8]. Group 3: Company Overview and Financial Performance - New Qi An is a manufacturer of glycine and sucralose, with a significant portion of its revenue derived from international markets, accounting for nearly 80% of sales in 2024 [10][12]. - The company has experienced revenue fluctuations, with reported revenues of 761.5 million RMB in 2022, 447 million RMB in 2023, and 569 million RMB in 2024, largely due to declining product prices [13]. - Recent trends indicate a recovery in product prices, particularly for sucralose, which has seen a price increase of 150% from July 2024 to March 2025, benefiting New Qi An's financial outlook [14].