HK IPOs Top Global Fundraising, Half Slip
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- Hong Kong exchange led global IPO fundraising last year, raising more capital than the NYSE and Nasdaq, according to KPMG.
- Wind Information reported that roughly half of the 179 Hong Kong IPOs launched since Jan 2025 fell in price over the past three months, while the Hang Seng index slipped modestly and the FTSE Renaissance Global IPO Index rose over 10%.
- Stock Connect listings showed extreme swings: among 33 stocks added on March 9, over half doubled before inclusion, eight (including Deepexi) surged >300%, but all eight later fell at least 10%, with Deepexi down 51% by June 3.
- Goldman Sachs cut its rating on Hong Kong H‑shares, favoring mainland A‑shares for AI hardware exposure, after forecasting $60 bn in IPO proceeds this year—nearly double 2025’s $36 bn.
- Benjamin Cavender of China Market Research Group said low fees, weaker fundraising and competition pressure forced parts of China’s financial sector to prioritize short‑term performance.
Why it matters: Investors who bought Connect‑listed IPOs see sharp gains then steep losses, while mainland A‑share traders benefit from cheaper alternatives, and Hong Kong’s market reputation risks erosion as underperformance persists.
