Hong Kong IPO market ends strongly: six mainland companies went public together, raising US$900 million in a single day

# Ye Huiwen

Hong Kong’s stock market capped off a year of robust recovery with a flurry of IPOs, as the total funds raised through equity issuances in 2025 hit a new high not seen since 2021. The recent concentrated listings of multiple companies with steady first-day performances, coupled with the launch of a new round of large-scale financings including that of Zhipu AI, have jointly consolidated market confidence, indicating that Hong Kong has strongly reclaimed its status as Asia’s equity financing hub.

Hong Kong’s stock market drew the curtain on its recovery year with an intense spate of listing activities.

On Tuesday, six mainland Chinese companies made their collective debuts on the Hong Kong stock exchange, raising a combined total of approximately HK$6.99 billion (equivalent to roughly $900 million). This batch of new listings set a positive tone for Hong Kong’s capital market.

According to data from the London Stock Exchange Group (LSEG), the total funds raised through equity issuances (including initial public offerings and follow-on offerings) in Hong Kong reached around $75 billion in 2025, more than triple the amount in 2024 and the highest level since 2021. This milestone marks Hong Kong’s strong comeback in the global capital market, reaffirming its leading position as Asia’s equity capital market hub.

In their Tuesday debuts, five out of the six newly listed companies opened above their offer prices and largely maintained upward trends throughout the trading session without experiencing sharp fluctuations. This steady performance reflects a rebound in investor confidence, particularly amid regulatory adjustments and ample liquidity, with the market remaining optimistic about tech-driven growth prospects. Market participants generally expect this positive momentum to carry over into 2026.

George Au, Deputy Sales Director of Phillip Securities, pointed out that this year has been the best-performing period since Ant Group’s IPO was suspended. He believes that the boom in margin lending, successful listing cases such as Mixue Ice Cream & Tea and Contemporary Amperex Technology Co., Limited (CATL), as well as the adjustment to placement rules in August aimed at curbing excessive speculation by retail investors, have collectively boosted market sentiment.

The listed companies span a range of sectors from artificial intelligence drug discovery to industrial steel structure manufacturing, with tech stocks standing out prominently in particular.

Insilico Medicine, a generative AI drug discovery firm, led the new listings with an approximately 45% surge in its opening price. Software company Wuyi Horizon opened nearly 15% higher, while industrial steel structure manufacturer Meilian Co., Ltd. saw a more than 15% gain. In addition, premium skincare brand Lin Qingxuan rose by around 9%.

The other two companies delivered relatively flat performances, with Xunce and Woan Robotics opening at parity with their offer prices. George Au noted that the market sentiment remains solid heading into the year-end, showing no obvious signs of sluggishness, and investors are currently adopting a more cautious and rational stance.

## IPO Relay: Over HK$9 Billion Worth of Projects Launched

Alongside the listings of the six companies, three other Chinese enterprises kicked off their Hong Kong share offerings on Tuesday, adding over HK$9.22 billion in financing scale to the city’s IPO market. All these companies are scheduled to list on January 8.

Specifically, Knowledge Graph Technology Co., Ltd. (better known as Zhipu AI) plans to offer 37.42 million H-shares at a price of HK$116.20 per share, aiming to raise HK$4.35 billion. Chipmaker Shanghai DeepCompute Semiconductor Co., Ltd. will offer 25.4 million shares at HK$144.60 each, raising HK$3.67 billion. Surgical robot manufacturer Shenzhen Jingfeng Medical Technology Co., Ltd. intends to offer 27.72 million shares at HK$43.24 apiece, with a targeted fundraising of approximately HK$1.2 billion.

## Outlook for 2026: Over 300 Enterprises in the Listing Pipeline

This intensive wave of listings and new share issuances underscores the recovery of Hong Kong as an IPO hub. Over 300 companies have submitted listing applications so far, suggesting that this momentum is likely to extend into 2026.

The market’s next focus will turn to Shanghai Biren Technology Co., Ltd., which is set to list on January 2. Analysts point out that the company’s debut performance may set the tone for the market in 2026. In addition, Shanghai Xiyu Technology, a player in the artificial intelligence sector, is still in the process of preparing for its listing. Listing applications from AI and tech-focused enterprises are poised to dominate the market supply in the early part of 2026.

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