Core Insights - The Hong Kong IPO market has seen unprecedented subscription enthusiasm this year, with record oversubscription rates, including a leading 7558 times for a major IPO [1] - Deloitte's report predicts that Hong Kong will continue to lead the global IPO fundraising rankings, with 66 new listings expected in the first three quarters of 2023, raising a total of HKD 182.3 billion, a 228% increase from the previous year [1][3] - The report anticipates that the strong momentum will continue into the last quarter of 2023, with over 80 new listings expected in 2025, raising between HKD 250 billion to HKD 280 billion [1][3] Market Dynamics - Six super-large IPOs are expected in 2023, including five A+H shares and one spin-off from an A+H listed company, alongside four large IPOs [3][4] - The China Securities Regulatory Commission has introduced measures to support leading domestic companies in listing in Hong Kong, enhancing the regulatory framework for overseas listings [3][4] - The average daily trading volume in the Hong Kong stock market has remained above HKD 200 billion, contributing to an overall increase in company valuations [4] Performance Metrics - The average first-day return for new IPOs in Hong Kong was 33% in the first half of 2023, significantly higher than the 9% recorded in the same period last year [7] - 98% of new IPOs this year received oversubscription, with 87% achieving oversubscription rates exceeding 20 times [7] - The top five new IPOs this year all raised over HKD 10 billion, with total fundraising for these five reaching HKD 98.7 billion, a 135% increase year-on-year [8][10] Sector Analysis - The manufacturing sector accounted for the highest proportion of fundraising in the first three quarters of 2023, at 37%, followed by the consumer sector at 20% and the energy and resources sector at 16% [10][11] - The healthcare and pharmaceutical sectors had the highest number of IPOs, while the manufacturing sector led in fundraising amounts, driven by the large IPO of CATL [7][10] Investment Appeal - The diverse distribution of industries in the Hong Kong IPO market enhances its attractiveness to foreign capital, providing various sector allocation opportunities [11] - The A+H listed companies benefit from easy capital flow in the Hong Kong market, often trading at a discount, creating a valuation opportunity for value investors [11]