85% of new stocks successfully listed in the first quarter, BUSYMING becomes the "King of Profit"

The Hong Kong IPO market continues to improve, with 33 new stocks or 84.6% of new listings in the first quarter this year being profitable, a significant increase from last year's 46.7%. Additionally, the "profit king" saw an expanded profit margin year-on-year. Analysts indicate that the impact of the US-Iran war on market risk appetite may lead to a decrease in the number of new stocks in the local market in the second quarter compared to the first quarter, depending on whether there are large new stocks to support fundraising amounts, emphasizing quality over quantity. Significant Increases in New Stock Quantity and Fundraising Amounts in the First Quarter According to our statistics, excluding transfers, there were 40 new stocks listed in the first quarter of this year, raising approximately HKD 108.4 billion. This represents an increase of nearly 1.7 times compared to 15 new stocks last year, while the fundraising amount surged 4.8 times from HKD 18.7 billion last year. This year, the new stock market started strong, with the first 24 newly listed stocks maintaining their value until early March when a new stock first "broke" its issue price. Excluding new stocks listed by introduction, among the 39 new stocks in the first quarter, 33 had price increases, 2 remained unchanged, and 4 "dipped"; last year during the same period, there were 7, 3, and 5 new stocks respectively. The "profit king" for the first quarter this year was BUSYMING (1768), with a strong profit of HKD 16,340 per board lot; last year during the same period, it was Mixue Group (2097) with a profit of HKD 8,750 per board lot. As for the "loss king," this quarter it was Tong Shifu (664), with a loss of HKD 2,950 per board lot; last year during the same period, it was Conch Materials Technology (2560) with a loss of HKD 1,430 per board lot. Notably, the GEM new stock BBSB (8610) was oversubscribed 10,744.1 times in the Hong Kong public offering, ranking second in the history of new stock "oversubscription kings." Analysts Estimate a Quarterly Decline in New Stock Quantity, Awaiting Quality to Prevail Deloitte China Southern Region Managing Partner Ou Zhenxing stated that the pace of the Hong Kong IPO market was strong in January but slowed down in March due to regulatory concerns regarding the quality of sponsors, coupled with market volatility under geopolitical tensions. However, due to the conflicts in the Middle East, there has been an influx of funds from the Middle East or other regions into Hong Kong, indicating that Hong Kong still has advantages and reflects ample local capital. Traditionally, the performance of the Hong Kong IPO market in the second quarter usually exceeds that of the first quarter, but the US-Iran war's impact on market risk appetite may lead to a decrease in the number of new stocks in the second quarter, depending on whether there are large new stocks to support fundraising amounts, emphasizing quality over quantity. Currently, the queue for companies waiting to list in Hong Kong has reached a new high. Financial Secretary Paul Chan stated in a blog last Sunday that there are currently over 500 applications waiting to list in Hong Kong; however, the industry is facing difficulties due to a shortage of manpower to handle the surge in listing applications. The Securities and Futures Commission and the Stock Exchange have observed a decline in the quality of draft listing documents, and there are certain substandard behaviors among sponsors. Additionally, the Stock Exchange is not resting on its laurels and began consulting market opinions last month on proposals to enhance the competitiveness of the listing mechanism, including relaxing the thresholds for dual-class shares