Insurance funds participated in cornerstone investments in 10 Hong Kong-listed IPO companies within the year

Our reporter, Leng Cuihua

Since the beginning of 2026, the Hong Kong Stock Exchange has continued to see star companies listing, with IPO market activity remaining high. Insurance funds frequently appear on the cornerstone investor lists of Hong Kong IPO companies, with participation significantly increasing.

Industry analysts believe this is the result of multiple factors, including the downward shift of market interest rate centers and the improved quality of Hong Kong IPO targets. Looking ahead, insurance funds’ participation in the Hong Kong IPO market may further expand, but potential risks should also be closely monitored.

High enthusiasm for cornerstone investments

Wind data shows that as of March 17, there have been 28 Hong Kong IPO companies listed this year. Insurance funds participated as cornerstone investors in 10 of these companies, subscribing to approximately 23.61 million shares with a total subscription amount of about HKD 1.558 billion.

In comparison, in all of 2025, insurance funds participated in cornerstone investments in 12 Hong Kong IPO companies, subscribing to a total of 80.257 million shares with a total amount of HKD 2.62 billion.

Cornerstone investors are those who subscribe to IPO shares at the offering price, ensuring they receive their entitled equity, and are typically locked in for six months from listing. These investors are usually large financial institutions or groups, and their participation indicates strong confidence in the IPO stocks.

Specifically, this year, four insurance funds have participated in Hong Kong IPO cornerstone investments. Among them, Taikang Life participated in seven, Dajia Life in two, and both Taikang Insurance Group and Ping An Life in one each.

朱俊生, a postdoctoral fellow and professor of applied economics at Peking University, told Securities Daily that the increased participation of insurance funds in Hong Kong IPO cornerstone investments this year is driven by three main factors:

First, changes in asset allocation environments. Amid the ongoing decline of the interest rate center, traditional fixed-income asset yields have generally fallen, prompting insurance funds to moderately increase their equity allocations under risk-controlled conditions to maintain long-term investment returns. Due to relatively clear pricing and stable lock-in periods, Hong Kong IPO cornerstone investments offer a combination of growth potential and investment certainty akin to equities.

Second, the Hong Kong market offers high-quality targets. In recent years, a number of technology innovation, biomedicine, new energy, and digital economy companies have chosen to list in Hong Kong, providing long-term funds with attractive investment opportunities.

Third, the natural alignment of investment mechanisms with the attributes of insurance funds. The cornerstone investment mechanism features clear lock-in periods, stable allotment ratios, and high transparency in pricing, aligning well with the investment characteristics of insurance funds. Additionally, some insurance funds aim to establish long-term capital partnerships with high-quality enterprises through cornerstone investments, fostering a more stable investment ecosystem.

Furthermore, based on this year’s cornerstone investments by insurance funds in Hong Kong IPO companies, there is a clear preference for AI (artificial intelligence) and biomedicine sectors. Zhang Lingjia, President of Guangdong Kelly Capital Management Co., Ltd., told Securities Daily that this is because biomedicine and related fields are core directions of national industrial upgrading with strong policy support; the new economy sector has high growth potential, making it attractive for equity investments and sharing in technological dividends.

朱俊生 added that some AI and innovative drug companies have strong global market potential, with growth prospects not limited to a single market, which makes them more appealing to insurance funds with long-term allocation needs.

Creating a win-win situation

Active participation of insurance funds in Hong Kong IPO cornerstone investments can create a win-win situation for both the funds and the Hong Kong market.

Zhang Lingjia stated that for insurance funds, cornerstone investments sit between primary and secondary markets, with return volatility less correlated with traditional stocks and bonds. This helps smooth overall portfolio fluctuations and provides more stable returns across market cycles. By investing in high-growth potential companies, insurance funds can achieve long-term returns surpassing traditional assets, better matching their long-term liabilities.

朱俊生 added that the Hong Kong market is also an important channel for insurance funds to allocate overseas equities, helping diversify risks and gradually enhance their industry research and long-term equity investment capabilities.

For the Hong Kong market, Zhang Lingjia noted that as a source of stable, long-term capital, the active participation of insurance funds reflects confidence in the market and specific IPO companies, which can effectively boost market confidence and stabilize pricing.

Regarding returns from insurance funds’ cornerstone investments in Hong Kong IPO companies, take MINIMAX-WP as an example: its issue price was HKD 165 per share. On January 9, it officially listed in Hong Kong, and as of March 17, its closing price reached HKD 1,033 per share. To date, Taikang Insurance Group’s investment has realized substantial unrealized gains.

Overall, among the 28 companies listed in Hong Kong this year, 24 closed higher on their first day than their issue price. Sixteen companies gained over 10%, six over 50%, two over 100%, and one over 200%.

However, interviewees emphasized that cornerstone investments have at least a six-month lock-in period, and the investment cycle is generally longer. Therefore, short-term stock price fluctuations should not be the sole measure of success or failure. Long-term returns should be the focus, and the performance of insurance funds’ cornerstone investments in Hong Kong IPOs requires observation over a longer period.

Moving toward more professional and long-term participation

This year, insurance funds’ enthusiasm for Hong Kong IPO cornerstone investments has risen significantly. Industry insiders believe that future participation will trend toward specialization and long-term engagement.

朱俊生 believes that, on one hand, insurance institutions will place greater emphasis on industry research and project screening capabilities, leading to more cautious investment decisions. On the other hand, investment focus may shift further toward industry leaders and scarce assets, especially companies with core technological barriers and global competitiveness. Additionally, insurance funds may diversify their market participation methods beyond cornerstone investments, including pre-IPO investments, strategic placements, and long-term equity holdings. Some may also strengthen cooperation with industrial capital or large institutional investors through joint investments or dedicated funds to enhance project acquisition and risk management.

Zhang Lingjia sees three key changes to look forward to: First, the scope of investment will broaden from core technology sectors like AI and semiconductors to emerging fields such as green energy and fintech. Second, investment strategies will become more proactive, moving beyond passive financial investments to early, small, and hard-tech investments, with deeper involvement in strategic planning and resource matching of portfolio companies. Third, cooperation models will deepen, with insurance funds more frequently partnering with industrial capital and top private equity firms, even through joint investments or dedicated funds, to build an investment ecosystem.

Despite the advantages of cornerstone investments, risks such as IPO underperformance and liquidity lock-up remain. For example, Zhang Lingjia pointed out that the six-month lock-in period means that if market sentiment weakens or the secondary market declines after listing, insurance funds face the risk of share price drops and inability to exit promptly, potentially leading to paper losses. Moreover, high-growth, high-tech companies often carry significant risks, including technological and market uncertainties, challenging traditional research and investment systems. Therefore, insurance funds need to enhance their research capabilities and carefully select high-quality, “certain” targets to mitigate risks.

In summary, industry experts believe that in a low-interest-rate environment, cornerstone investments in Hong Kong IPO companies will remain a key component of insurance funds’ equity asset allocation. However, they must adhere to prudent and value-oriented investment principles, accurately identify growth opportunities, and aim for long-term, stable returns amid the IPO boom.