Core Viewpoint - The difficulty of obtaining shares in Hong Kong IPOs has increased compared to the previous year, with a notable discussion surrounding the "loss of rights" for retail investors due to the special offering structure of Ningde Times' IPO [1] Group 1: IPO Market Dynamics - Among 27 new stocks, excluding the SPAC listing of Zhaogang Group, 9 stocks had a subscription success rate of 10% or lower [1] - Ningde Times applied for an exemption from the allocation mechanism, ensuring that retail investors receive a fixed portion of 7.5%, while institutional investors secured over 90% of the shares [1] Group 2: Regulatory Changes - The Hong Kong Stock Exchange is systematically reducing the influence of retail investors in the IPO process [1] - In February, the CEO of Hong Kong Stock Exchange, Charles Li, mentioned that increasing the proportion of new shares allocated to book-building would allow for better negotiation between buyers and sellers, aiming to reflect market demand more accurately and minimize post-listing price volatility [1]

Group 1 - In 2025, 27 new stocks debuted in the Hong Kong market, with a 26% initial closing price drop rate, which is an improvement from the previous year's 32% [1] - The performance of new stocks showed significant divergence, with 10 stocks rising over 20% on their first day, and Ming En Bio leading with a 116.7% increase [1] - Retail investors are increasingly participating in Hong Kong IPOs, with over half of the IPO projects since May having subscription multiples exceeding 50 times [3] Group 2 - The difficulty of winning allocations in new stock subscriptions has increased, with only 10% or lower allocation rates for 9 new stocks, excluding SPAC listings [3] - The special IPO structure of Ningde Times has sparked discussions about "retail investor disenfranchisement," as it limits retail participation to 7.5% while institutional investors receive over 90% of allocations [3] - The Hong Kong Stock Exchange is systematically reducing the influence of retail investors in new stock offerings, as indicated by the CEO's comments on increasing the proportion of institutional allocations [3][4] Group 3 - Industry experts agree that a high public offering ratio for new stocks may create selling pressure in the market, while institutional investors can provide stability [4] - There is a growing trend towards an institutional-led issuance model, as companies seek to minimize the impact of retail investors on their stock prices [4] - Concerns have been raised about the concentration of shares among large investors, which may lead to mispricing and increased volatility, suggesting a need for a balance between institutional stability and retail investor interests [4]