Rebound in Hong Kong’s IPO market led by Chinese hard-tech, semiconductor and healthcare listings

Hong Kong’s IPO market continues to demonstrate a vigorous rebound into mid-2026, driven predominantly by Chinese hard-tech sectors—especially semiconductors and AI hardware—and healthcare listings. This resurgence is marked by marquee IPOs, robust aftermarket performance, enhanced liquidity through secondary offerings, and fintech-enabled market infrastructure improvements. Yet, the landscape is increasingly nuanced by emerging investor caution, regulatory vigilance, and geopolitical tensions, shaping capital flows and market sentiment.

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Strong Momentum Sustained by Hard-Tech and Healthcare IPOs

Investor appetite for frontier technologies and innovative healthcare companies remains a cornerstone of Hong Kong’s renewed IPO dynamism. Recent developments reinforce the city’s role as a premier capital raising hub for China’s technology ambitions:

• Nexchip Semiconductor’s impending H-share IPO, targeting approximately US$550 million, remains a flagship transaction. Nexchip specializes in advanced 12-inch wafer fabrication, a critical segment amid China’s semiconductor self-sufficiency drive under continued U.S. export restrictions. Its anticipated successful listing will further anchor Hong Kong’s position as a conduit for financing domestic hard-tech growth.

• Montage Technology (6809) continues to impress, with its share price having more than doubled since its debut. The company’s focus on data processing chips for AI applications aligns with China’s strategic goal of hardware sovereignty. Montage’s strong aftermarket performance, despite ongoing U.S. review of Nvidia’s H200 export license, underscores investor confidence in domestically grown chipmakers.

• Tencent-backed AI startup StepFun is reported to be planning a Hong Kong IPO, with expected proceeds around US$500 million. This potential listing adds to the burgeoning pipeline of AI hardware and software firms seeking to capitalize on Hong Kong’s vibrant capital markets.

• Exceptional oversubscription rates exceeding 460 times for IPOs such as Blue Lens Technology signal robust retail and institutional enthusiasm for frontier innovation. These figures reaffirm Hong Kong’s attractiveness as a preferred listing venue for cutting-edge technology companies.

• In healthcare, Fosun Pharma’s spin-off Adgenvax is progressing through shareholder approvals, poised to leverage strong global demand for innovative life sciences ventures. This move highlights the increasing prominence of healthcare in Hong Kong’s IPO ecosystem and its appeal to international investors.

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Expanding Pipeline of Hard-Tech Listings and Market Opportunities

New entrants and sector expansions continue to enrich Hong Kong’s IPO pipeline:

• CXMT Corp, a notable DRAM memory chip manufacturer, has initiated IPO preparations in Hong Kong. Supported by prominent state-owned investment banks such as China International Capital Corporation (CICC) and CSC Financial, CXMT’s planned listing will deepen Hong Kong’s role as a funding platform for semiconductor innovation.

• Reports from Nikkei confirm that leading Chinese chipmakers, including SMIC and Hua Hong Semiconductor, are aggressively scaling advanced chip output, backed by state support. These efforts reinforce the growing ecosystem of hard-tech companies tapping Hong Kong’s capital markets.

• Hong Kong Exchanges and Clearing (HKEX) is reportedly weighing an expanded scope for confidential IPO applications. This potential regulatory shift could provide issuers with greater flexibility around timing and disclosure, enhancing the city’s competitiveness as an IPO destination amid global market volatility.

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Enhanced Liquidity and Market Depth Through Secondary Offerings and Capital Restructuring

Liquidity and tradability have been significantly improved via strategic secondary listings and share structure adjustments, broadening investor participation:

• The secondary listing of Shenzhen Woer Heat-Shrinkable Material raised around US$360 million from a substantial offering sized at about US$5 billion. This transaction highlights Hong Kong’s expanding appeal beyond tech and healthcare, attracting mature industrial firms seeking liquidity and global capital access.

• CALB Group’s conversion of over 11% of its share capital into H shares has materially increased free float, addressing prior liquidity constraints and enhancing price discovery. This has fostered deeper institutional engagement and market stability.

• ZhongAn Online’s post-IPO equity placement raised HK$3.92 billion via 215 million new H shares at HK$18.25 each. The strong institutional uptake underscores confidence in Hong Kong’s capital markets as a platform for follow-on financing.

Coupled with fintech-driven settlement and custody improvements, these developments have created a more dynamic and liquid trading environment conducive to sustained market activity.

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Fintech and Regulatory Innovations Accelerate Market Efficiency and Cross-Border Capital Flows

Hong Kong continues to enhance its capital market infrastructure through fintech adoption and regulatory reforms:

• Euroclear’s expanding Asia-Pacific presence streamlines cross-border settlement and custody, reducing transaction frictions and broadening global investor access to Hong Kong-listed securities.

• Regulatory progress embracing regulated stablecoins and tokenized assets has shortened settlement cycles and increased market participation. Hong Kong is positioning itself as a regional fintech innovation hub, supporting advanced capital market instruments and infrastructure.

• The Shanghai-Hong Kong Stock Connect program continues to deepen cross-border investment flows. Enhanced institutional research highlighting valuation arbitrage opportunities between A and H shares encourages diversified portfolio allocation and capital mobility.

• Recent capital structuring moves, notably by CALB and Shenzhen Woer, have expanded the tradable share pool, easing liquidity bottlenecks vital for vibrant IPO and post-IPO market activity.

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Regulatory Vigilance and Industry Consolidation Uphold Market Integrity

The Hong Kong Securities and Futures Commission (SFC) maintains a vigilant regulatory posture focused on balancing market growth with investor protection:

• There is continued emphasis on curbing volatility associated with low-float IPOs and speculative trading, with enhanced monitoring to detect and deter pump-and-dump schemes.

• Rigorous due diligence by IPO sponsors and underwriters remains a priority to ensure transparency, quality disclosures, and sustainable capital formation.

• These measures foster a stable environment encouraging both retail and institutional participation while supporting innovation-led listings.

At the same time, industry consolidation led by CICC is expanding underwriting capacity and distribution networks, enabling Hong Kong to handle larger and more complex offerings despite geopolitical headwinds.

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Geopolitical and Supply Chain Realities Temper Market Sentiment and Capital Allocation

Hong Kong’s IPO market continues to navigate complex geopolitical and supply chain challenges that influence investor behavior:

• The U.S. government’s ongoing review of Nvidia’s H200 export license exemplifies persistent export control challenges on advanced AI chip technologies. This regulatory uncertainty intensifies China’s push for semiconductor self-reliance and sustains investor interest in domestic players like Montage Technology and Nexchip.

• Despite ambitious government policies, China still faces significant wafer fab equipment (WFE) self-sufficiency constraints, with local suppliers struggling to meet minimum content thresholds due to technological and supply chain gaps. This reality tempers overly optimistic investment projections and calls for prudent capital deployment.

• Nonetheless, profitability in China’s semiconductor sector is rising, driven by AI demand and state support. Diversified companies such as Nexchip enhance Hong Kong’s appeal as a financing venue for frontier technologies.

• On the macroeconomic front, China’s benchmark lending rates have remained stable for nine months, reflecting cautious monetary policy. This steadiness may moderate aggressive capital deployment while underpinning market stability.

• A recent Reuters report revealed that Chinese AI startup DeepSeek trained its latest model on Nvidia’s H200 chip despite U.S. export bans, highlighting the complexities in enforcing export controls and the geopolitical tensions accelerating China’s chip self-sufficiency drive.

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Outlook: Balanced Growth Anchored in Innovation, Infrastructure, and Prudence

Hong Kong’s IPO market momentum into mid-2026 rests on a robust pipeline of hard-tech and healthcare listings, a maturing ecosystem enriched by secondary offerings, and fintech-driven improvements. However, the evolving investor landscape demands a measured approach:

• Sustained regulatory vigilance will be critical to preserving market integrity while fostering innovation and quality capital formation.

• Continued fintech and infrastructure upgrades will streamline cross-border capital flows, reduce settlement times, and enhance liquidity.

• Prudent capital allocation is necessary given geopolitical tensions, export controls, and WFE self-sufficiency challenges, helping to mitigate risk and avoid overexuberance.

• Strategic industry consolidation and fintech innovation will support increasingly sophisticated offerings, meeting the evolving needs of retail and institutional investors.

Hong Kong’s reinforced market infrastructure, proactive regulatory environment, and fintech adoption position it well to maintain investor confidence amid global uncertainties. The city’s stature as Asia’s premier international IPO hub and a vital gateway for China’s innovation-led growth remains intact—contingent on balancing opportunity with prudent risk management.

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In summary, the 2026 rebound of Hong Kong’s IPO market is characterized by strong investor demand, elevated valuations, improved liquidity, and significant post-IPO equity financings centered on China’s hard-tech and healthcare ambitions. The interplay of enhanced regulation, fintech innovation, geopolitical headwinds, and supply chain realities will critically shape the market’s trajectory, with Hong Kong poised to remain a vital nexus for frontier industry capital flows in the years ahead.