Core Viewpoint - The Hong Kong stock market has become the preferred destination for global IPO fundraising, driven by its financing scale and clear regulatory policies [3][4]. Group 1: IPO Performance - As of the end of October 2025, 80 companies have completed IPOs in Hong Kong, raising a total of 216 billion HKD, with secondary financing exceeding 229 billion HKD [3]. - The Hong Kong stock market is expected to lead the world in IPO fundraising for the year, benefiting from a trend of capital flight from US markets due to a declining interest rate environment [3][4]. Group 2: Market Dynamics - The Hang Seng Index has risen from 20,000 to 26,000 points in 2025, marking an approximate 30% increase, while the Hang Seng Tech Index has surged by 36% [4]. - Daily trading volume in the Hong Kong stock market has reached 250 billion HKD, double that of previous years, largely supported by southbound capital, which now accounts for 50% of the market [4]. Group 3: Regulatory Environment - The Hong Kong Stock Exchange is noted for its transparent system and strong policy predictability, with minimal impact from policy fluctuations on the approval process [4]. - Companies can flexibly conduct financing based on their needs, facilitating overseas mergers and acquisitions while retaining the option for future A-share listings [4]. Group 4: Legal Considerations - The choice between Hong Kong and US markets has become clearer, with Hong Kong's market performance, policy support, and liquidity advantages making it the current preferred option for companies [5]. - Legal professionals play a crucial role in helping companies navigate control and management continuity, as well as tax and capital flow issues in special structures [5].