The IPO scale in the Hong Kong stock market has increased by over 500% year-on-year, surpassing HKD 100 billion since the beginning of this year.

● Reporter Hu Yu

With two new stocks landing on the Hong Kong stock market on March 24, the scale of listed companies in Hong Kong has once again expanded. According to Wind data, the financing amount in the Hong Kong IPO market has surpassed HKD 100 billion in less than three months since 2026, a significant increase of over 500% compared to the same period last year; from the perspective of individual stocks, the 34 newly listed stocks have shown a clear increase in their “technology” content, with many coming from the semiconductor and software industries.

It is noteworthy that, unlike the simultaneous upward trend in both the primary and secondary markets in 2025, the Hong Kong secondary market has experienced fluctuations and corrections this year, which have not mirrored the hot state of the primary market. Industry insiders believe that the impact of the current geopolitical conflicts in the Middle East on global risk assets has not been fully eliminated, and Hong Kong stocks are placing greater emphasis on risk prevention in the short term. Aside from the value dividend sector, it is recommended to continue focusing on the new energy sector.

Breakthrough of HKD 100 billion in less than three months

On March 24, Zejing Holdings and Kailesi Technology both debuted on the Hong Kong stock market. Information shows that Zejing Holdings’ main products include W-HUD, AR-HUD, CMS, transparent A-pillars, transparent vehicle window displays, and other intelligent cockpit-related products, while Kailesi Technology is a comprehensive provider of intelligent on-site logistics robots, dedicated to redefining the operational model of the supply chain through advanced robotic technology.

Since 2026, the overall trend of the Hong Kong IPO market has continued the hot momentum of 2025, with financing amounts for new stocks significantly increasing compared to the same period last year, breaking through the HKD 100 billion mark.

According to Wind data, as of the time of publication of this China Securities Journal report on March 24, the number of new stocks listed in Hong Kong this year has reached 34, with a total IPO financing amount of HKD 1,044.92 billion. This represents a staggering increase of 161.54% compared to 13 new stocks in the same period last year, and a financing amount increase of 551.89% compared to HKD 160.29 billion in the same period last year. In 2025, the total number of new stocks listed in Hong Kong was 117, with a total financing amount of HKD 2,869.10 billion. In less than three months since 2026, the number of newly listed stocks has accounted for nearly 30% of the total for 2025, with the financing amount accounting for as much as 36.42% of the total for 2025.

From the perspective of individual new stock financing scales, two new stocks, Muyuan Foods and Dongpeng Beverage, have emerged since 2026 with financing amounts exceeding HKD 10 billion, with their respective amounts being HKD 12.099 billion and HKD 11.099 billion. There are 23 new stocks with financing amounts above HKD 1 billion, while in the same period of 2025, only 4 new stocks had financing amounts exceeding HKD 1 billion, and the highest financing amount for a single new stock was no more than HKD 4 billion.

From the distribution of new stocks by industry, in the same period of 2025, the Hong Kong new stock market was dominated by consumer enterprises such as Mixue Group, Guming, and Blukoo, while since 2026, the market has shown a clear increase in “technology” content: among the 34 new stocks listed since 2026, 6 are from the semiconductor industry, tying with the industrial engineering sector for first place, with the companies Lantek Technology, Zhaoyi Innovation, and Omnivision all being star enterprises from the A-share market; in addition, 4 new stocks are from the software industry, and 2 new stocks are from the information technology equipment industry, all belonging to the technology growth style.

Two major factors trigger market adjustments

Despite the relatively few instances of new stocks listed since 2026 on the Hong Kong stock market experiencing price drops on their first day of trading, with some new stocks doubling in price compared to their issue prices, the overall performance of the Hong Kong secondary market has failed to continue the upward trend of 2025, particularly with a more pronounced adjustment in the Hang Seng Tech Index.

According to Wind data, as of March 24’s close, the Hang Seng Index and the Hang Seng China Enterprises Index have both declined by 2.21% and 4.65% respectively this year, while the Hang Seng Tech Index has seen a cumulative drop of 12.42% so far this year.

What has triggered the adjustment in Hong Kong stocks, especially in the tech sector? In this regard, Chen Meng, chief analyst of overseas strategies at Dongwu Securities, believes that in the context of geopolitical conflicts in the Middle East, the war has heavily impacted oil refineries in Iran, Qatar, and Kuwait, keeping oil prices high and the Federal Reserve’s stance relatively hawkish, which suppresses market liquidity. Additionally, from an industrial perspective, major Hong Kong stocks like Tencent Holdings and Alibaba-W are entering a period of significant investment in AI, raising market concerns that the surge in capital expenditure may squeeze short-term profit levels, putting pressure on tech stocks.

Li Yujie, a strategy analyst at Huatai Securities Research Institute, believes that the impact of the current Middle East geopolitical conflict on global risk assets has not been fully eliminated. For Hong Kong stocks, risk prevention should be emphasized in the short term, but from a medium- to long-term perspective, this conflict has catalyzed three points of demand growth, including energy transition needs, demand for dollar-denominated settlement and reserve alternatives, and the need for safe international capital retention. Hong Kong stocks are situated at the intersection of these three demands and are expected to benefit from a stabilization of fundamentals and a gradual appreciation of the RMB in the long-term structural changes. “If the relevant supporting infrastructure construction can be completed quickly and adequate preparations are made, the Hong Kong region has the opportunity to seize the current new development opportunities.”

Left-side layouts need to await clearer catalysts

In terms of capital flows, recent news indicates that Middle Eastern funds are continuously buying Hong Kong stocks, which is seen as a potential source to enrich the incremental capital for Hong Kong stocks and boost market sentiment. In this regard, Liu Chenming, chief strategy analyst at GF Securities, stated that current interest rates, exchange rates, and foreign capital flows do not show signs of a systemic shift of risk-averse funds, and Middle Eastern funds are likely still primarily acting as cornerstone investors in Hong Kong IPOs, focusing on primary market cornerstone investments as a strategic allocation rather than short-term risk-averse behavior.

Li Yujie believes that the entry of short-term risk-averse funds into Hong Kong does not immediately translate to inflows into Hong Kong stocks and should be viewed realistically. However, from a medium- to long-term perspective, the overall inflow of overseas funds into Hong Kong helps to increase the monetary stock in Hong Kong, enhance market liquidity, and reduce liquidity risk premiums. Structurally, the flow of funds and personnel contributes to increased demand for Hong Kong’s commercial real estate, wealth management, insurance, and other service industries. From an industry perspective, sovereign funds may prefer core industries that align with local Middle Eastern strategies, have long-term growth potential, and are compliant and transparent, such as digital economy, new energy, high-end manufacturing, and healthcare, while private wealth may favor high-dividend targets in stock investments.

Regarding the short-term performance of Hong Kong stocks, Liu Chenming believes that late March may serve as an observation window. If market sentiment can effectively improve in mid to late March, attention can be directed towards the Hang Seng Tech Index and Hong Kong Stock Connect internet sectors; if there is a further unexpected tightening of liquidity, opportunities for allocation in Hong Kong’s dividend sectors should be considered.

Chen Meng believes that the current valuation of the Hang Seng Tech Index has clearly adjusted, but left-side layouts should be approached cautiously, and it is recommended to wait for clearer catalysts. In terms of asset allocation, given the high risk of market volatility in the short term, it is still advised to prioritize defensive strategies, and aside from the value dividend sector, continue to focus on the new energy sector.