Technology and the New Economy Take Center Stage: Hong Kong IPO Fundraising in Q1 Reaches a Five-Year High

Securities Times reporter Wang Jun

In the first quarter, the Hong Kong stock IPO market delivered an eye-catching set of results featuring “HK$100 billion” in financing. The figure reached a quarterly high since the second quarter of 2021. Data from Wind shows that, as of March 31, a total of 40 companies in the Hong Kong stock market completed their IPOs, up 150% year over year; the total amount raised was nearly HK$110 billion, soaring 489% year over year. These figures demonstrate the appeal and financing capacity of the Hong Kong stock market.

“A+H” companies became the core force behind fundraising in the first quarter. Among the 40 newly listed Hong Kong stock companies, 15 were “A+H” companies listed in both locations. Among the top 10 companies by financing size, 7 have already been listed on A shares. The combined financing size of those 7 exceeds HK$52 billion, accounting for nearly half of the total IPO financing amount in Hong Kong stocks in the first quarter, highlighting the strategic position of the Hong Kong stock market as an important hub for the global capital layout of mainland companies.

Technology and the new economy take the lead

The core driving force behind the Hong Kong stock IPO market in the first quarter came from large companies listing in batches. Two mainland industry leaders—Muyuan Co., Ltd. and Dongpeng Beverage—successively went public in Hong Kong. Each raised more than HK$109.93B, with a combined contribution of over HK$23 billion. In addition, the listings of semiconductor and AI sector leaders such as Lianqi Technology and Biren Technology further boosted the overall fundraising scale. Data shows that in the first quarter of this year, Hong Kong companies raised HK$18.67B through IPOs, up HK$73.35B from HK$45.68B in the same period of 2025, a year-on-year increase of 489%.

From an industry distribution perspective, the Hong Kong stock IPO market in the first quarter showed a clear “technology emphasis.” Data shows that a total of 26 companies in sectors including semiconductors, hardware equipment, machinery, biopharmaceuticals, software services, medical equipment, and services were listed, accounting for 65%; the fundraising amount was HK$5.34B, representing 66.73%.

Among them, companies in fields such as semiconductors, software services, and robotics were especially densely represented. These include Zhipu AI, the leader in AI large models, MINIMAX-W; semiconductor design company Zhaoyi Innovation; OmniVision Group, a leader in image sensors; Lianqi Technology, a leader in memory interface chips; as well as multiple robotics companies such as Hualian Robotics and Eston.

The strong performance of technology companies is also reflected in the secondary market. After Zhipu’s listing, its share price kept rising. During intraday trading on April 1, it climbed to HK$938 per share, more than 7 times higher than the issue price. Its total market capitalization at one point exceeded HK$400 billion. After MINIMAX-W listed, it also continued to climb. Its highest price reached as high as HK$1,330 per share, making it the “highest-priced stock” in Hong Kong. In sharp contrast, traditional consumer and industrial companies performed poorly. Stocks such as Yulousai Shared, Red Star Cold Chain, and Tong Shifu all performed worse after listing, and some companies saw their share price break below the issue price on the very first day of trading.

According to data from the Hong Kong Exchanges and Clearing House, as of March 31 there were still 430 companies waiting to be listed in Hong Kong, including 17 already approved but not yet listed, and 413 still in processing. According to LiveReport big data, as of March 31, 7 companies in the Hong Kong stock market had passed their hearing stage, or will be listed soon, namely Huqin Technology (A+H), Sigener New Energy, Quankey Technology, Shenghong Technology (A+H), Changguang Chengxin, Shineward Optoelectronics (A+H), and Sunmi Technology.

The rapid recovery of the Hong Kong IPO market is the result of a resonance between institutional optimization and ample liquidity. Hua Tai Securities said that mainland companies still have financing needs, and Hong Kong has carried out targeted reforms to address this. Measures such as accelerating “A+H” listings and lowering the time and uncertainty costs and other thresholds for technology companies’ IPOs in Hong Kong have reduced the barriers. At the same time, a weaker U.S. dollar, lower interest rates, and performance in the secondary market have also prompted companies’ willingness to list to rebound.

Cornerstone investment total rises more than 7-fold

As a distinct feature of Hong Kong stocks, new issues at the time of IPO typically introduce cornerstone investors. Among the new stocks listed in the first quarter, 35 new issues introduced cornerstone investors. The total number of cornerstone investors participating in the subscriptions was 318, up by nearly 280 compared with the same period last year—cornerstone investment totalled HK$4.99B, growing more than 7-fold year over year.

Looking at the details, in the first quarter 14 new issues received cornerstone investor subscription amounts of no less than HK$1 billion. Of these, 10 had cornerstone subscription sizes above HK$2 billion. The top three new issues by cornerstone investment size were Muyuan Co., Ltd., Dongpeng Beverage, and Lianqi Technology, subscribed in amounts of HK$3.51B, HK$200k, and HK$10k, respectively. In addition, the cornerstone investment sizes for Zhipu, MINIMAX-W, Dahua CNC, Zhaoyi Innovation, OmniVision Group, and others were all no less than HK$2 billion. Among cornerstone investors, international and domestic top institutions such as Temasek, BlackRock, UBS, Morgan Stanley, the Abu Dhabi Investment Authority, Tencent Holdings, and others appeared frequently.

Subscription enthusiasm for new shares runs high

Against the backdrop of newly listed shares running hot, investors have also shown heightened enthusiasm for the Hong Kong stock IPO market.

According to statistics from LiveReport big data, in the first quarter a total of 8 new issues received applications for more than 200k shares, including Biren Technology, MINIMAX-W, Lianqi Technology, HaeZhi Technology Group, Mingming Busy, Hualian Robotics, Zhipu, and Guanghe Technology. There were 4 new issues with public subscription multiples exceeding 5,000 times—BBSB INTL, Yulousai Shared, HaeZhi Technology Group, and Hualian Robotics. Among them, BBSB INTL had a higher-than-10k effective public offering subscription multiple because its issue size was smaller.

It should be noted that a high subscription multiple does not mean the new issue will not trade below its issue price. For example, Yulousai Shared drew strong interest during the offering period, but its share price fell 43.64% on the first day of listing.

In recent times, the probability of new Hong Kong stock issues trading below their issue prices has increased, likely related to market conditions. Yuan Mei, research and investment planning director at Sullivan Jieli (Shenzhen) Cloud Technology Co., Ltd., analyzed for Securities Times reporter and said that the increase in new issues trading below the issue price is mainly because the energy crisis triggered by geopolitical conflicts has put pressure on risk assets, leading to clear pullbacks in the main indexes of multiple markets. For those applying in the IPO subscription, the performance of new shares is more clearly influenced by short-term capital and market sentiment. Meanwhile, a stock’s long-term rise or fall is mainly affected by changes in industry trends and company performance.

In the view of Wen Tianna, CEO of BoDa Capital International in Hong Kong, the valuations of some new issues are biased toward A-share anchors or previous highs, while Hong Kong investors place greater emphasis on discounted cash flows, dividend returns, and liquidity. At the same time, some companies’ pricing has not fully considered differences in the risk preferences of the secondary market, leading to adjustments after listing. Hot industry tracks can attract capital, while individual stocks whose fundamentals or outlook face pressure are more likely to “cool off.”