Multiple Chinese investment banks successively step down as overall coordinators for Hong Kong stock IPOs, seeking to focus on advantageous projects while facing intensified regulatory scrutiny and labor shortage pressures

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Blue Whale News, March 12 — Reporter Hu Jie Recently, there have been continuous reports in the Hong Kong IPO market about Chinese securities firms withdrawing from the role of overall coordinator for upcoming listed companies.

Industry analysts told Blue Whale News that amid the strong rebound of the Hong Kong IPO market, some Chinese securities firms are choosing to step down as overall coordinators for Hong Kong IPO projects. On one hand, this may be to concentrate limited human resources and ensure the smooth progress of other key projects. On the other hand, it is also a response to the tightening of qualification reviews for sponsor representatives and increasingly strict project reviews by Hong Kong regulators.

Previously, the Hong Kong Securities and Futures Commission (SFC) issued a circular noting that the quality of draft listing documents has declined, and licensed entities have exhibited some substandard conduct in sponsor duties. The phenomenon of increased IPO volume but declining quality has attracted regulatory high attention.

Multiple Chinese securities firms withdraw from the role of overall coordinator

Since 2026, there have been ongoing reports of Chinese securities firms withdrawing from the role of overall coordinator for Hong Kong IPOs.

According to a March 8 announcement from Saimeite, the company has terminated its appointment as the overall coordinator with CITIC Lyon Securities Limited (“CITIC Lyon”) and CITIC Construction Investment (International) Financing Limited. The terminations took effect on March 6 and March 8, respectively. After the adjustments, Saimeite’s remaining Hong Kong IPO overall coordinators are Haitong International, Shenwan Hongyuan Securities (Hong Kong), and Futu Securities, while CITIC Lyon and CITIC Construction Investment International still retain joint sponsor roles.

Earlier, on January 12, WeDoctor Holdings Limited disclosed on the HKEX that the appointment of China Merchants International Finance Limited as overall coordinator had expired, and both parties agreed not to renew. As of that announcement, Huatai Financial Holdings (Hong Kong) Limited was the only remaining overall coordinator.

At the end of last year, Zhejiang Liji Storage Technology Co., Ltd. also announced that it had agreed with Minyin Securities Limited to terminate the appointment of Minyin Securities as one of its overall coordinators on December 12, 2025.

It is understood that overall coordinators are mainly responsible for the later stages of global offerings, holding rights such as providing allocation advice to issuers and exercising over-allotment options. According to the Hong Kong Stock Exchange’s Listing Rules, issuers must not only appoint sponsors, underwriters, and legal advisors but also must appoint an overall coordinator. For main board listings, the appointment of sponsors and overall coordinators must be made at least two months before submitting the listing application.

As a core role in Hong Kong IPO global offerings, the importance of the overall coordinator is increasingly recognized. Industry insiders point out that compared to the strict profit requirements and lengthy review cycles of the A-share market, the listing thresholds in Hong Kong are more lenient, attracting many companies to apply for listing. However, this also results in a market with a mix of high- and low-quality targets. Additionally, the Hong Kong market has been sluggish, with many new listings experiencing “breaks” and “low trading activity” after debut. In this environment, completing an IPO is only the first step; successfully selling shares to investors and achieving fundraising goals remains a major challenge for issuers.

Staff shortages and cautious focus on quality projects

Industry experts note that the strong rebound of the Hong Kong IPO market may be a major reason for Chinese investment banks to withdraw from the role of overall coordinator.

From 2025 to early 2026, the Hong Kong IPO market showed a robust recovery, with a significant increase in the number of listing applications. Wind data shows that this year, 28 companies have listed in Hong Kong, up 16 from 12 in the same period in 2025. In 2025, the Hong Kong IPO market experienced a strong revival, with 119 new listings and total fundraising exceeding HKD 280 billion. Both the number of IPOs and the amount raised saw substantial growth.

“Years ago, the Hong Kong IPO market was sluggish, and many investment banks reduced their teams. Now that the market has recovered, there is a shortage of senior sponsors and project execution personnel, making it difficult to advance multiple projects simultaneously with high quality. Many securities firms are urgently recruiting IPO talent to address staffing shortages,” a securities analyst told reporters.

However, Hong Kong regulators are also tightening the qualification review for proposed sponsor representatives. At the end of January 2026, the SFC issued a circular addressing the surge in new listing applications in 2025, setting quantitative management standards. It clarified that the number of active listed company projects supervised by a single sponsor’s key personnel should not exceed six, and tightened the review of new license applicants, with a significant drop in new licensees holding the “6” license.

Moreover, the SFC and HKEX had previously issued multiple warnings about rough application materials, underwriters’ insufficient supervision capabilities, and individuals responsible for up to 19 projects simultaneously. Regulations require each IPO to have a “signing sponsor” with many years of experience, substantial involvement in advisory projects, and passing professional exams. These signals of tightening further increase the staffing pressure on securities firms.

Industry insiders say that under this context, some Chinese securities firms’ withdrawal from the role of overall coordinator is likely a strategic move to concentrate limited human resources and ensure the smooth progress of other key projects. Earlier this year, CICC announced plans to reorganize its project pipeline, focusing on “the most promising deals,” making securities firms more cautious and selective when undertaking IPOs.

In summary, under the structural contradiction of a booming Hong Kong IPO market and a shortage of professional talent, investment banks are actively adjusting their strategies to cope with stricter regulations and staffing challenges.