After the new IPO allocation policy, the mechanism B's first-hand winning rate is only 1%. Tiger Brokers: Last year's margin trading amount first exceeded one trillion

The Hong Kong Stock Exchange (388) has implemented reforms to its IPO allocation mechanism for six months, and the public offering portion no longer has a permanent mandatory reallocation mechanism. Tiger Brokers (Hong Kong) cited market data analysis indicating that since the new system was implemented, 9 out of the 10 new stocks with the highest debut price increases have adopted the non-mandatory reallocation "Mechanism B," with the highest first-day price increase reaching 3.6 times, sparking a citywide craze for "new stock subscriptions." During this period, there were 63 IPOs that chose Mechanism B, overwhelmingly surpassing the 10 that would trigger reallocation (of which 2 chose Mechanism A, and another 8 chose 18C), but the winning rate for one lot in Mechanism B IPOs plummeted sharply to only about 1%. Margin Subscription Ratio Rises to Over 90% Data from Tiger Brokers shows that after the new system was implemented, as of the end of February this year, the proportion of users subscribing to new stocks through margin trading at Tiger Brokers soared to over 90%, a significant increase from about 70% before the reform, driving Tiger International's total margin amount for the year 2025 to surpass HKD 1 trillion for the first time, setting a historical record. Reviewing market data, the IPO market ecology has undergone structural changes before and after the new system. Compared to the year before the new regulations were implemented, when there were no new stocks triggering reallocation, the median winning rate for one lot was as high as 50%, with a median first-day price fluctuation of 4.2% and an average increase of about 53.6%; for new stocks that triggered reallocation, the median winning rate was also 17.5%, with a median oversubscription multiple of 194 times, and an average first-day increase of about 10.5%. Median Oversubscription Multiple for Mechanism B Increases to 1,091 Times However, after the new regulations were implemented, the data performance of the 63 companies under Mechanism B without reallocation became extreme: the median oversubscription multiple skyrocketed to 1,091 times, causing the median winning rate for one lot to plummet to 1%; at the same time, the median first-day price fluctuation for Mechanism B new stocks reached 24%, with an average increase of 53.6%. As for the 8 companies under 18C that triggered reallocation during the same period, due to recording oversubscription multiples exceeding a thousand times, the median winning rate was also lowered to 5%. All 10 IPOs with the Highest Debut Price Increases are "Mechanism B" In addition, during the six months since the new system came into effect, all 10 IPOs with the highest debut price increases have almost all adopted "Mechanism B." Taking the stock with the highest debut price increase, NobiKan (2635), as an example, its first-day price rose by 363.8%, but the winning rate for one lot was only 0.85%; while the most competitive stock with the lowest winning rate, Kegong (2543), also adopted Mechanism B, with oversubscription exceeding 7,500 times, causing the winning rate for one lot to drop to an extreme low of only 0.02%, but a lower winning rate does not equate to a higher debut price increase, as the stock's first-day increase was only about 14.9%