Summary of Key Points
The interaction between the mainland and Hong Kong capital markets has become increasingly closely linked recently: Last year, it was A-share leading companies going public on the Hong Kong stock market (A-to-H listings), but this year the trend has reversed, with a noticeable increase in Hong Kong-listed companies returning to the A-share market (H-to-A listings), especially those in the AI and hard technology sectors (such as Zhipu and MiniMax). These companies initiated the process of listing on China's Science and Technology Innovation Board (STAR Market) less than five months after their initial public offerings on the Hong Kong Stock Exchange. The reasons behind this include policy support for dual listings, the need for continuous financing by companies, and the fact that the Hong Kong market offers better valuation for hard technology firms with more definitive listing processes. Additionally, this year, hard technology and new quality productivity companies have dominated the Hong Kong IPO market, seeing a significant increase in both fundraising amounts and the number of listings. However, the Hong Kong Stock Exchange and intermediary institutions are also strictly reviewing the quality of these applications to avoid a situation where quantity increases while quality declines.
Detailed Analysis
1. Reverting to the A-share Market Less Than Five Months After Listing on HKEX? AI Companies' "Reverse Listings" Become a New Trend
The most prominent examples this year are Zhipu (02513.HK) and MiniMax (00100.HK), which both listed on the Hong Kong Stock Exchange in early January and announced their plans to list on China's STAR Market within less than five months. Zhipu aims to raise 15 billion yuan, while MiniMax has already begun IPO preparations. Both companies have performed well on the Hong Kong market, with Zhipu's stock price rising by more than 11 times (1127%) and reaching a high of HK$1,993, and MiniMax's stock price increasing by over three times (302%). Nevertheless, both are currently in the red—Zhipu incurred a loss of HK$4.7 billion in 2025, and MiniMax lost $1.87 billion. Why do they still want to return to the A-share market? Zhipu states that the main motivations are for research and development (AI is a capital-intensive field) and to access additional funds, as well as to enhance their influence in the domestic AI industry.
2. Three Key Drivers Behind Companies' Preference for "H-to-A" Listings
Experts from UBS have identified three primary reasons:
- Policy Support: Policies facilitating dual listings are becoming more streamlined, making the process of moving between the two markets less cumbersome.
- Financing Needs: AI and hard technology companies require substantial funding for research and development; returning to the A-share market allows them to raise additional capital.
- Hong Kong as a Launchpad: The Hong Kong listing process is more predictable in terms of timing, and global investors view AI-related companies as relatively scarce, offering higher valuations. By first listing on HKEX to secure funds and set a price benchmark, companies can then list on the A-share market with more confidence.
3. The Transformation of the Hong Kong IPO Market This Year: Hard Technology Takes the Lead
The Hong Kong IPO market has been very active this year, with 62 companies going public in the first five months (a 33% increase from last year), raising a total of HK$166.9 billion (a 112% rise). More importantly, hard technology and new quality productivity companies have become the main focus of IPOs, accounting for 63% of the total issuance volume (compared to just 16% last year). This is due to the global AI trend, which has enabled Chinese AI and semiconductor companies to transform their technologies into profitable applications (e.g., AI models being applied in offices and healthcare). Companies like Shenghong Technology and Muyuan Foods, which have listed through the "A+H" route, have raised over HK$10 billion each.
4. Hong Kong IPOs Are Booming, but Quality Remains High
Some worry that the increase in listings may lead to a decline in quality. The Hong Kong Stock Exchange has clarified that it will not lower listing standards and will continue to strictly review applications. Intermediary institutions are also playing a key role in screening companies, focusing on their financial health and potential returns for investors, with an emphasis on hard technology projects (which are encouraged by policy and have good growth prospects). Additionally, the pool of cornerstone investors (institutions that subscribe for large amounts before a company lists) has become more diverse, including international long-term funds, Middle Eastern sovereign funds, and specialized funds, especially for AI and semiconductor projects.
5. The Benefits of Cross-Market Linkage for Both Companies and the Market
For companies, this dual listing approach allows them to access global capital in Hong Kong while also raising domestic funds on the A-share market, thereby expanding their influence in both regions. For the market, it promotes smoother capital flow, provides investors with more high-quality hard technology options, and supports the development of new quality productivity initiatives in China—creating a "dual financing channel" that accelerates the growth of hard technology companies.
In summary, the mutual integration of the mainland and Hong Kong capital markets is acting as an accelerator for the development of hard technology firms, enabling them to secure more funding and grow faster while allowing investors to benefit from technological advancements.