Hong Kong Stocks "Zi" Says | Optimization of Listing System Expected to Be Implemented, Hong Kong IPOs Continue to Be Hot This Year

How Will the Optimization of the HKEX Listing System Attract Innovative Companies to Go Public?

Daily Economic News Reporter: Zeng Zijian Daily Economic News Editor: Yuan Dong

Today (May 11), LeDong Robotics listed on the HKEX, and its stock price doubled on the first day—making the new-issue subscribers very happy.

As of today, there are more than 50 newly listed companies in Hong Kong stocks, with total funds raised exceeding HKD 155 billion. And for all of 2025, the number of new listings in Hong Kong stocks is 119, with total funds raised of more than HKD 280 billion.

In other words, in less than 5 months this year, the number of new shares has already reached 42% of last year’s figure, while the total funds raised have reached 54% of last year’s. With Hong Kong IPOs (initial public offerings) staying hot, there must be reasons—and it is also foreseeable that this level of heat could continue throughout the year.

One important reason is that the HKEX’s listing system is still being further optimized, and related measures are likely about to be rolled out.

In March this year, the HKEX released the “Listing Mechanism Competitiveness Review Consultation Paper.” At the time, the consultation period was 8 weeks, and it was completed last Friday (May 8) with the close of the consultation on the collection of opinions. After that, the HKEX will make further decisions based on the feedback.

The above document focuses on three main areas: first, it will significantly lower the listing thresholds for companies with different voting-rights structures. For example, for innovative companies without revenue, the market value threshold will be lowered from HKD 40 billion to HKD 20 billion. For companies with revenue, the threshold will be lowered from a market capitalization of HKD 10 billion and revenue of no less than HKD 1 billion to a market capitalization of HKD 6 billion and revenue of HKD 600 million. Second, for overseas issuers seeking to list in Hong Kong, the HKEX will also lower thresholds while optimizing the listing process. Third, it will improve provisions for initial listings and listing arrangements—for example, fully opening up the “confidential draft filing,” which is a major breakthrough in the listing mechanism.

Once these listing mechanism optimization measures are successfully implemented, it will be another major change after the 2018 reform of the listing system, and it will also be an important step for the HKEX to enhance competitiveness and further strengthen its position as an international financial center.

In fact, apart from the continuously increasing expectations for optimization of the listing system, the author has also noticed very clear changes in Hong Kong IPOs this year. For example, Hong Kong IPO companies are gradually showing a trend toward larger market capitalizations. According to CITIC Securities, this year, the share of companies with a market capitalization above HKD 10 billion has reached 77%. From an industry perspective, as of April 2026, projects for newly listed Hong Kong companies have clearly been moving toward technology manufacturing sectors such as AI (artificial intelligence) and high-end equipment.

While larger market capitalization does not necessarily mean new share offerings will cool off. Since the beginning of this year, the IPO subscription returns for companies in Hong Kong have already returned to a relatively good condition: the rate of stocks falling below the issue price has declined, and the average and median first-day gains are 126.5% and 89.5%, respectively.

Another change is that the number of “A to H” listings (mainland A-share companies issuing H shares) has increased significantly. Even now, there are more than 440 companies that are queuing for IPO; among them, the number of “A to H” reserves is as many as 126.

With the listing system being accelerated in its optimization, IPO subscription enthusiasm staying high, and a sufficient pool of resources, it will be difficult for Hong Kong IPO activity to cool down this year.

Disclaimer: The content and data in this article are for reference only and do not constitute investment advice. Please verify before using it. Any actions you take are at your own risk.

Daily Economic News