Halfway through 2026, the Hong Kong IPO market delivered impressive results. According to the latest HKEX data, 68 companies listed in Hong Kong in H1 2026, raising a total of approximately HKD 128 billion, up 45% year-on-year, the highest for the period since 2023. Biotech and tech sectors contributed over 60% of the fundraising, serving as the core engine driving the IPO recovery.
Three Key Drivers of the IPO Boom
This IPO boom is not accidental but the result of multiple factors. First, improved global liquidity. After ending its rate hike cycle in late 2025, the Fed cut rates by 50 bps in March 2026, driving global capital back to equities from bonds, with Hong Kong stocks benefiting as a valuation trough. Second, HKEX's new listing rules for specialty tech companies, launched in 2025, have continued to take effect, allowing revenue- and profit-less tech firms to list, significantly lowering the threshold for biotech and AI companies. Third, mainland regulatory environment has stabilized; internet platform rectification is largely complete, and the path for Chinese ADRs to return to Hong Kong is smoother.
Sector Highlights: Biotech Leads, Tech Follows
- Biotech: 22 biotech firms listed in H1, raising HKD 48 billion (37.5% of total). Representative cases include cell gene therapy-focused Starlight Biotech (raised HKD 8.2 billion) and antibody drug developer Kangrui Biotech (HKD 6.5 billion). These firms generally have proprietary tech and mature clinical pipelines, attracting long-term capital.
- Tech: AI, cloud computing, and semiconductors dominated. 18 tech firms raised HKD 36 billion in total, with GPU designer ChipWave Technology becoming the largest IPO in H1 at HKD 11.8 billion. The company achieved technological breakthroughs amid domestic substitution, drawing subscriptions from multiple sovereign funds.
- Consumer & New Energy: Though relatively smaller, listings of NEV parts maker GreenPower and cross-border e-commerce platform SailUp also drew attention, showing HK market's growing acceptance of niche leaders.
Reshaping HK Stock Ecology: From Finance & Property to New Economy
Over the past five years, the Hong Kong stock market has undergone a fundamental structural shift. Before 2019, financial and property stocks accounted for over 50% of the Hang Seng Index weight; by end-June 2026, new economy sectors (IT, healthcare, consumer) had risen to 48%, nearly half. This IPO wave further reinforces the trend: about 75% of new listings belong to the new economy, injecting fresh blood.
HKEX Group CEO Chen Yiting said at a press conference in early July: 'We are very pleased to see more and more excellent enterprises representing the future direction of economic growth choosing Hong Kong as their listing venue. HKEX will continue to optimize its listing regime, enhance market competitiveness, and cement Hong Kong's status as a leading global financing center.'
Risks Investors Should Note
Despite the hot IPO market, investors need to stay rational. On one hand, new stocks diverged in post-listing performance: among the 68 new stocks, 21 (31%) had fallen below issue price as of July 27. Biotech had a higher break rate near 40%, reflecting valuation disagreements on unprofitable firms. On the other hand, overall HK market liquidity remains a concern—average daily turnover increased from 2025 but is still about 30% below the 2021 peak. Large IPOs may further drain existing funds, pressuring liquidity for small- and mid-cap stocks.
Outlook: Full-Year Fundraising May Exceed HKD 250 Billion
Looking ahead to H2, the IPO pipeline remains ample. According to HKEX's listing application list, over 90 companies have submitted A1 applications as of July 20, with an expected listing pace of 30-40 per month. Among them, the market-watched ByteDance spin-off, Ant Group's IPO relaunch, and the IPO of local AI model company Zhiyan Technology are expected to land in H2. Based on institutional forecasts, full-year 2026 HK IPO fundraising could reach HKD 250-280 billion, returning to the global top three.
Industry analysts point out that the sustained IPO activity not only provides investors with more quality targets but also helps align HK stock valuation systems with international standards. For participants of the Hong Kong Stock Practical Camp, understanding IPO pricing mechanisms, analyzing core terms of prospectuses, and developing subscription and selling strategies will be key competencies for H2 practical operations.