The IPO scale in the Hong Kong stock market has increased by over 500% year-on-year, surpassing HKD 100 billion since the beginning of this year.

● Reporter: Hu Yu

With two new stocks debuting on March 24, the scale of listed companies in the Hong Kong stock market has expanded again. According to Wind data, the IPO market in Hong Kong has raised over HKD 100 billion in less than three months since 2026, representing a more than 500% increase compared to the same period last year; looking at individual stocks, the 34 newly listed stocks show a significant increase in their “tech” content, with multiple stocks coming from the semiconductor and software industries.

It is noteworthy that unlike the simultaneous upward trend in both primary and secondary markets in 2025, the Hong Kong secondary market has experienced fluctuations and corrections this year and has not mirrored the hot state of the primary market. Industry insiders believe that the current geopolitical conflicts in the Middle East have not completely alleviated their impact on global risk assets, and in the short term, the Hong Kong market is placing greater emphasis on risk prevention, suggesting to continuously pay attention to the new energy sector aside from the value dividend sector.

Breaking the HKD 100 billion mark in less than three months

On March 24, Zejing Holdings and Kailesi Technology both made their debut on the Hong Kong stock market. According to data, Zejing Holdings’ main products include W-HUD, AR-HUD, CMS, transparent A-pillars, and transparent car window displays, while Kailesi Technology is a comprehensive provider of intelligent in-warehouse logistics robots, committed to redefining supply chain operations through advanced robotics technology.

Since 2026, the overall IPO market in Hong Kong has continued the hot trend of 2025, with new stock financing amounts significantly higher than the same period last year, and exceeding the HKD 100 billion mark.

Wind data shows that as of the time of the China Securities Journal’s report on March 24, the number of newly listed stocks in Hong Kong this year has reached 34, with total IPO financing amounting to HKD 1,044.92 billion. The number of new stocks has increased by 161.54% compared to 13 stocks during the same period last year, while the financing amount has surged by 551.89% compared to HKD 160.29 billion last year. In 2025, the total number of newly listed stocks in Hong Kong was 117, with total financing of HKD 2,869.10 billion. In less than three months since 2026, the number of newly listed stocks has accounted for nearly 30% of the total for 2025, with the financing amount making up 36.42% of the total for 2025.

Looking at the financing scale of individual new stocks, since 2026, two new stocks, Muyuan Foods and Dongpeng Beverage, have emerged with financing amounts exceeding HKD 10 billion, with financing amounts of HKD 120.99 billion and HKD 110.99 billion, respectively. There are 23 new stocks with financing amounts above HKD 1 billion, while during the same period in 2025, there were only 4 new stocks with financing amounts exceeding HKD 1 billion, with the highest financing for individual new stocks not exceeding HKD 4 billion.

In terms of industry distribution of new stocks, during the same period in 2025, the Hong Kong new stock market was led by consumer enterprises such as Mixue Group, Guming, and Bluco, while the “tech” content of the new stock market has significantly increased since 2026: among the aforementioned 34 newly listed stocks since 2026, 6 are from the semiconductor industry, tying for first place with the industrial engineering industry, where Lanqi Technology, Zhiyu Innovation, and OmniVision Technologies are all star companies from A-shares. Additionally, there are 4 new stocks from the software industry and 2 from the information technology equipment sector, all belonging to the tech growth style.

Two factors triggering market adjustments

Despite the performance of new stocks, since 2026, there have been fewer cases of new stocks on the Hong Kong market experiencing a drop in price on the first day of trading, with some new stocks doubling their price on the first day compared to the issue price. However, compared to the prosperous situation of both primary and secondary markets in Hong Kong in 2025, since 2026, the overall secondary market has not been able to sustain the upward trend of 2025, with the adjustment of the Hang Seng Tech Index being particularly pronounced.

Wind data shows that as of the close on March 24, the Hang Seng Index and the Hang Seng China Enterprises Index have fallen by 2.21% and 4.65%, respectively, since the beginning of this year, while the Hang Seng Tech Index has seen a cumulative decline of 12.42%.

What has triggered the adjustment in the Hong Kong market, particularly in the tech sector? In this regard, Chen Meng, the chief analyst of overseas strategy at Dongwu Securities, believes that against the backdrop of geopolitical conflicts in the Middle East, the war has severely impacted Iranian, Qatari, and Kuwaiti refineries, keeping oil prices high, while the Federal Reserve’s hawkish stance suppresses market liquidity. Additionally, from an industrial perspective, major Hong Kong stocks like Tencent Holdings and Alibaba-W have entered a period of significant investment in AI, raising market concerns that increased capital expenditures will squeeze short-term profit levels, putting pressure on tech stocks.

Li Yujie, a strategy analyst at Huatai Securities Research Institute, believes that the current impact of the Middle Eastern geopolitical conflict on global risk assets has not been completely eliminated. For the Hong Kong stock market, risk prevention should be emphasized in the short term. However, from a medium to long-term perspective, this conflict has catalyzed three demand growth points, including demand for energy transition, the need for currency settlements and reserves, and the demand for secure international capital retention. The Hong Kong market is at the intersection of these three demands and is expected to benefit from a stabilized fundamental situation and gradual appreciation of the Renminbi in the context of long-term structural changes. “If the relevant infrastructure construction can be completed quickly and sufficient preparations are made, Hong Kong has the opportunity to seize the current new development opportunities.”

Left-side layout requires waiting for clearer catalysts

In terms of capital flow, recent news has indicated that Middle Eastern capital continues to buy into the Hong Kong stock market, which is seen as a potential source to enrich the increment of capital in Hong Kong stocks and boost the market. In this regard, Liu Chenming, the chief strategy analyst at GF Securities, stated that the current interest rates, exchange rates, and foreign capital flows do not show signs of systemic risk-averse capital transfer. Middle Eastern capital may still primarily act as cornerstone investors in Hong Kong IPOs, with their participation in Hong Kong stocks mainly focused on cornerstone investments in the primary market, representing strategic allocation rather than short-term risk aversion behavior.

Li Yujie believes that the entry of short-term risk-averse capital into Hong Kong does not immediately mean it will flow into Hong Kong stocks, and this should be viewed objectively. However, from a medium to long-term perspective, in total, foreign capital coming to Hong Kong helps increase the monetary stock of Hong Kong, enhance market liquidity, and reduce liquidity risk premiums. Structurally, the flow of capital and personnel helps increase demand for commercial real estate, wealth management, insurance, and other service industries in Hong Kong. From an industry perspective, sovereign funds may prefer core industries that align with local Middle Eastern strategies, have long-term growth potential, and are compliant and transparent, such as digital economy, new energy, high-end manufacturing, and healthcare, while private wealth in stock investment may prefer high-dividend targets.

Regarding the short-term performance of the Hong Kong stock market, Liu Chenming believes that late March may be an observation window. If market sentiment improves effectively in mid to late March, attention can be paid to Hang Seng Tech and Hong Kong Stock Connect internet directions; if there is another unexpected tightening of liquidity, opportunities for allocation in the Hong Kong dividend sector can be considered.

Chen Meng believes that the current valuation of the Hang Seng Tech Index has clearly adjusted, but left-side layout should be approached with caution, recommending waiting for clearer catalysts. In terms of asset allocation, given the high volatility risk in the short term, it is still advised to focus on defensive strategies, with continued attention to the new energy sector aside from the value dividend sector.