Hong Kong Stock IPO Fundraising Exceeds 100 Billion Yuan This Year, Securities Firms Say Southbound Funds Act as Market Ballast

GateUser-bd883c58 · 2026-03-22T01:30:40+00:00

Hong Kong stocks achieved contra-trend gains against the backdrop of global non-US assets under pressure, with southbound capital serving as a market stabilizer. Data shows that Hong Kong Exchanges and Clearing's IPO fundraising is growing rapidly, while mainland capital continues to increase holdings, reflecting a reallocation of market capital. Analysts point out that Hong Kong stock performance will be influenced by corporate earnings going forward.

GateUser-bd883c58

2026-03-22 01:30:40

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Ask AI · How does southbound capital become a stabilizer for Hong Kong stocks against the trend?

【Global Times Finance Comprehensive Report】Wind data shows that as of March 20, the number of new listings on the Hong Kong Stock Exchange in 2026 has exceeded 30, a year-on-year increase of 150%; IPO fundraising reached HKD 100.472 billion, a year-on-year increase of 559.02%, making it the fastest pace of IPO fundraising surpassing HKD 100 billion since the Hong Kong listing reforms in 2018.

Galaxy Securities recently published an article stating that, against the backdrop of widespread pressure on non-U.S. assets globally, Hong Kong stocks rose 1.45% on March 16, contrary to the macro narrative of pressure on non-U.S. assets. This actually reveals that funds are seeking “safe havens” and reallocating within non-U.S. assets.

Galaxy Securities analyzed in detail that from February 27 to March 13, the market value of holdings by international intermediary institutions decreased by about HKD 700 billion. This directly reflects that international funds, especially active funds from Europe and America, based on global risk aversion or the need to replenish dollar liquidity, chose to phase out of the Hong Kong stock market. Meanwhile, the total market value of mainland funds through the Hong Kong Stock Connect increased from 10.88% to 10.92%, which coincides with the record of a single-day net purchase of HKD 32.994 billion by southbound funds on March 9. This contrarian increase in holdings indicates that southbound capital has acted as a ballast for the market during this adjustment.

Cinda Securities pointed out that as Hong Kong stocks enter the earnings season, corporate performance and outlooks will influence the overall market. Technically, the Hang Seng Index has formed a head and shoulders top since January and broke below the 26,300-point neckline in early March. Recently, it further tested the support at around 25,000 points, with short-term rebound resistance at the 50-day moving average of about 26,500 points.

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