Hong Kong IPO market to stay hot in 2026 with listings of advanced tech firms: CICC

China International Capital Corporation (CICC) forecasts that Hong Kong’s initial public offering (IPO) market will remain vibrant through 2026, fuelled by listings from high-end manufacturing and technology firms, even as the bull run in the A-share market draws some issuers back to the mainland.\n“We believe the heat in Hong Kong’s IPO market will continue next year, particularly in sectors aligned with national priorities such as robotics and advanced manufacturing,” Shi Qi, deputy head of capital markets at the investment bank, said during a briefing on Tuesday.\nCICC currently led peers with a pipeline of over 100 IPOs, according to the bank, reflecting strong demand from Chinese companies seeking international capital.\nShi noted that while IPO fundraising on the mainland had jumped to about 90 billion yuan (US$12.6 billion) so far this year from more than 60 billion yuan last year, Chinese regulators were taking a cautious approach, so capital flows were unlikely to be diverted entirely from Hong Kong.\nHong Kong raised HK$216 billion (US$27.8 billion) from IPOs in the first 10 months of this year, according to data from the Hong Kong stock exchange.\n\n“Even as the A-share market shines in this year’s bull run, Hong Kong remains attractive for quality issuers seeking global investors and valuation flexibility,” she said.\nCICC saw the city’s revised IPO pricing framework as beneficial, favouring institutional investors and supporting stability in the aftermarket. By allocating about 10 per cent of shares to retail investors – down from as much as 50 per cent previously – the market had seen improved pricing discipline, according to Shi.\n“A cap on retail participation leads to more rational pricing and post-listing performance tends to be healthier,” she said.\nHer comments come amid renewed interest from Chinese companies seeking listings in Hong Kong, bolstered by high-profile IPOs like electric-vehicle battery maker Contemporary Amperex Technology, which raised US$5.3 billion in May.\nLast Thursday, four Chinese companies, including autonomous driving rivals WeRide and Pony.ai, made their debuts in Hong Kong. However, shares of both companies fell nearly 10 per cent on their first day of trading, sparking discussions about a recent trend of post-listing declines.\nShi said that while some new listings had dropped below their offer prices amid market volatility, such fluctuations were “normal short-term movements” and fundamentally strong companies often rebounded quickly.\nLooking ahead, CICC expected more US-listed Chinese firms to pursue secondary or dual-primary listings in Hong Kong to mitigate delisting risks. Despite global uncertainties, institutional investment demand for top-tier Chinese companies remained robust, Shi said.\nMeanwhile, Chinese investment banks had gained market share in Hong Kong this year, benefiting from their extensive experience working with mainland issuers, while foreign banks remained active in larger or cross-border transactions, Shi added.\n