Hong Kong's IPO market recorded 84 new listings in the first half of 2024, raising approximately HKD 210 billion, representing year-on-year increases of 100% and 92% respectively, marking the highest fundraising total for the period in five years. The surge was driven by easing Middle East geopolitical tensions and sustained capital inflows into Asia-Pacific markets, with A+H dual listings accounting for 8 of the top 10 IPOs. As of end-June, the Hong Kong Stock Exchange was processing 528 listing applications, with accounting firms projecting full-year fundraising between HKD 300 billion and HKD 380 billion, supported by regulatory policies favoring hard tech sectors including AI, semiconductors, and biotech companies listing under Chapter 18A.
PwC Revises Full-Year Forecast to HKD 380 Billion
PricewaterhouseCoopers (PwC) Capital Markets Services Managing Partner Wong Kam Chien projected Hong Kong will welcome 150 new listings in 2024, raising approximately HKD 380 billion, up from the firm's initial forecast of HKD 350 billion. Wong stated the estimate is "relatively conservative" considering geopolitical uncertainties and unclear interest rate trends, adding that if market conditions remain stable in the second half and interest rates do not rise, total fundraising could exceed HKD 380 billion or even reach HKD 400 billion.
Wong noted that over 10 companies seeking listings in the first half of July have a combined fundraising target of HKD 60 billion. Based on the current application pipeline, the second half is expected to see approximately 2 companies raising over HKD 20 billion each, 5 to 10 companies raising between HKD 5 billion and HKD 10 billion, and the remaining 45 companies averaging HKD 1 billion each.
Wong identified mainland China tech giants pursuing dual listings as a major fundraising driver, with international investors showing strong interest in high-growth new economy sectors, particularly artificial intelligence, new materials, semiconductors, chips, and creative robotics. He added that the firm has received numerous inquiries from overseas companies, primarily from Southeast Asia and the Middle East in consumer goods and services sectors, with some very large-scale companies expected to list in Hong Kong in the second half or next year.
Deloitte Maintains HKD 300 Billion Target
Deloitte estimates Hong Kong will welcome 160 new listings in 2024, raising HKD 300 billion, maintaining its previous forecast. The firm expects Hong Kong to secure at least third place in global IPO fundraising rankings. Deloitte projects at least 5 listings exceeding HKD 10 billion in the second half, mainly from hard tech, semiconductors, consumer goods, healthcare, chemicals, and telecommunications sectors.
Deloitte China South Region Managing Partner Au Chun Hing stated that regulators have repeatedly expressed welcome for Hong Kong-listed companies returning to A-shares, describing a "dual-track, dual-platform" financing model as a trend. Au expects companies prioritized for A-share returns will be innovation-focused tech firms receiving strong national support and requiring substantial capital investment, including AI, robotics, and semiconductor enterprises.
Au noted that dual-channel financing can diversify funding sources, attract international investors while meeting overseas expansion needs, and facilitate employee stock ownership plans and local brand building.
EY Highlights Fast-Track Channel for Tech Companies
Ernst & Young (EY) Hong Kong Capital Markets Services spokesperson Lai Wan Fung noted that the "Tech Express Lane" further facilitates specialized tech and biotech companies applying for Hong Kong listings, shortening preparation time, reducing compliance costs, and improving financing efficiency. The channel provides a fast-track listing path for AI, semiconductor, and software services companies.
Lai maintains an optimistic outlook for Hong Kong's new stock market in the second half, stating the firm has not revised its year-end forecast of HKD 320 billion in IPO fundraising. Regarding mainland China's crackdown on illegal cross-border securities activities, Lai indicated this primarily targets retail investors, and the "IPO Connect" mechanism and foreign capital inflows should offset potential impacts.
Lai noted that mainland policies have clearly allowed Hong Kong-listed Greater Bay Area companies to list on the Shenzhen Stock Exchange under specified regulations. He expects more Hong Kong-listed companies to raise funds in the A-share market next year, though the "return to A-shares" process remains in early stages, with lengthy tutoring periods and time-consuming listing procedures requiring extended periods to show results.
Retail Investors Warned Against High Leverage Strategies
Futu Securities Senior Analyst Feng Wenhua stated that Hong Kong's new stock market momentum will continue in the second half. Approximately 400 companies are currently queuing for review, and the average first-day listing price surge of over 60% in the first half, with only 8 stocks breaking issue price, has successfully activated market sentiment. Combined with continuous southbound capital inflows and global long-term capital reallocation, the market has abundant liquidity to support a prosperous second half.
Feng noted that "hard tech" and "new economy" stocks will continue to lead in the second half. Benefiting from the global AI investment boom, semiconductor, AI hardware, and electronic information technology companies will actively raise funds in Hong Kong. Mainland China is strongly encouraging industry leaders to list in Hong Kong, with up to 100 quality A-share listed companies planning to issue H-shares, making "A+H" mega-caps the market's main capital attraction.
Feng pointed out that regulatory coordination between the two markets is forming a strong synergy. The China Securities Regulatory Commission has clearly given green lights to mainland leading enterprises, becoming a driving force for this IPO surge. On the Hong Kong Stock Exchange side, as Chapter 18C specialized tech listing rules mature, relaxed listing thresholds for unprofitable hard tech companies have successfully attracted numerous high-tech companies to submit applications. Due to surging application volumes, regulators in both markets have begun strengthening attention to listing document quality to maintain Hong Kong stocks' "high-quality" international reputation.
Feng advised retail investors to maintain high discipline despite prosperous market conditions. Investors should guard against the second-half lock-up expiration wave, which may create selling pressure for some stocks after lock-up periods. With the US Federal Reserve postponing rate cut expectations, high financing costs mean blindly using margin financing for new stock subscriptions may erode profits through high interest expenses. Investors should not blindly chase extremely high oversubscription multiples; in an environment of low single-lot allocation rates, retail investors should return to fundamentals and select stocks backed by quality cornerstone investors such as national teams, major foreign asset managers, or sovereign wealth funds, avoiding "chicken coop" stocks lacking substantial support.
Permanent Golden Finance: Large Subscription Amounts Do Not Guarantee Allocation
Winning Golden Finance Asset Management Managing Director To Kwok Bun estimates Hong Kong's new stock market will remain prosperous in the second half. Since Deepseek's launch last year, global AI development has intensified, with the entire related industry requiring substantial capital investment. Capital market functions are indispensable, and Hong Kong's consistently smooth-running stock fundraising and financing platform naturally serves China-related enterprises best, with such stocks expected to list in Hong Kong successively.
However, To reminded retail investors that under current rules, large subscription amounts do not guarantee allocation. Since last year, many related sectors have seen substantial gains, creating significant potential correction space, which is unfavorable for later entrants' valuations and listing atmosphere, affecting short-term trading strategies.
Upcoming Listings Include AI and Semiconductor Giants
Several major companies are scheduled to list in July, including Tongrentang Medical Care (Chinese medical services group, expected July 7), Dongfang Kemei (e-paper display supplier, expected July 8), Momenta (autonomous driving company with 14 cornerstone investors, expected July 8), Ruiwei Technology (visual intelligence AI company, expected July 8), Yikong Smart Driving (autonomous driving system developer, expected July 8), Baogai New Materials (mainland composite material trench cover manufacturer, expected July 8 GEM), Basic Semiconductor (silicon carbide power device merchant, expected July 8), RIGOL Technologies (mainland electronic measuring instrument business, expected July 9), Dingtai High-Tech (world's largest PCB drill bit supplier, expected July 9), Luxshare Precision (Shenzhen-listed "Apple chain" giant with Tencent among 26 cornerstone investors, expected July 9), Qiyunshan Foods (China fruit snack merchant, expected July 9), Rokae Robotics (collaborative robot supplier, expected July 9), SICC (advanced materials R&D and production enterprise with Tencent, Alibaba among 17 cornerstone investors, expected July 9), Nexchip (wafer foundry with 20 cornerstone investors, expected July 10), Binhua (chemical product manufacturer with 7 cornerstone investors, expected July 10), and Wing Hong Holdings (Southeast Asian container yard operator, expected July 13).
Companies that have passed Hong Kong Stock Exchange listing hearings include Toread (mainland outdoor apparel brand), Glory (intelligent manufacturing software solutions provider), and Benmo Dynamics (mainland robotics technology company). KTZ (Kazakhstan railway transport company) has submitted a listing application to the Hong Kong Stock Exchange. Zhongji Xuchuang (optical module manufacturing leader) has secretly submitted a listing application with potential fundraising up to HKD 54.6 billion. Mucse (one of the GPU "Four Little Dragons") is planning to issue H-shares for Hong Kong listing. Eoptolink (mainland optical module leader) is planning to issue H-shares for Hong Kong listing. Zhongqing Robotics (Chinese robotics startup) has confidentially applied for a Hong Kong IPO. Pasini (humanoid robot company with BYD and JD.com holdings) is reportedly preparing to submit a listing application in the coming months. Longsys (Chinese memory producer) has submitted a listing application to the Hong Kong Stock Exchange. Kunlun Core (Baidu's AI chip business) has submitted a confidential listing application. Qiangnao Technology (one of "Hangzhou Six Little Dragons") has reportedly submitted a confidential Hong Kong listing application. Syngenta Group (agrochemical giant under China National Chemical Corporation) plans to raise up to USD 10 billion. TOP TOY (trendy toy brand under Miniso with Temasek holdings) is also among potential listings.
FAQ
What were Hong Kong's IPO results in the first half of 2024?
Hong Kong recorded 84 new listings in the first half of 2024, raising approximately HKD 210 billion. This represented year-on-year increases of 100% in listing numbers and 92% in fundraising, marking the highest fundraising total for the period in five years. As of end-June, the Hong Kong Stock Exchange was processing 528 listing applications.
Why are accounting firms forecasting strong Hong Kong IPO performance for 2024?
Accounting firms cite easing Middle East geopolitical tensions, sustained capital inflows into Asia-Pacific markets, strong regulatory support for A+H dual listings, and high demand from hard tech sectors including AI, semiconductors, and biotech companies. PwC revised its full-year forecast to HKD 380 billion, while Deloitte maintains HKD 300 billion and EY maintains HKD 320 billion targets.
What strategies did experts recommend for retail investors subscribing to new stocks?
Futu Securities advised retail investors to guard against second-half lock-up expiration waves, avoid excessive margin financing due to high interest costs from delayed US Federal Reserve rate cuts, and not blindly chase extremely high oversubscription multiples. Investors should focus on stocks backed by quality cornerstone investors such as national teams, major foreign asset managers, or sovereign wealth funds, avoiding stocks lacking substantial support.
