Summary of Key Points
In the first half of 2026, IPOs on the Hong Kong Stock Exchange (HKEX) were exceptionally booming, with fundraising amounts reaching a new high for the same period in the past five years (HK$209.8 billion, exceeding the total of the previous four years). The A+H model played a dominant role, with 24 A-share companies listing on HKEX, accounting for over 60% of the total funds raised. Companies had various motivations for doing so: some sought to expand globally (e.g., Lingyi Intelligent Manufacturing), others wanted to obtain an “international identity” (e.g., Shengbang Co., Ltd.), and still others aimed to alleviate cash flow pressures (e.g., Xingji Micro-Assembly). However, there was a clear distinction among the new listings—those that capitalized on market trends (e.g., Huajian Future-B) saw their shares plummet on day one of trading, while those with genuine global operations gained long-term recognition.
At the same time, HKEX is transitioning from traditional financial, real estate, and consumer sectors to AI and hard technology industries. In the future, AI could account for more than 20% of the market weight, but there are still risks associated with the commercialization of these technologies.
I. How Booming Were IPOs on HKEX in the First Half of the Year? More Funds Raised Than in the Previous Four Years Combined
The first half of 2026 saw a “explosive growth” in HKEX IPOs. According to EY data, 84 new listings raised approximately HK$209.8 billion, the highest amount for this period in the past five years, surpassing the total fundraising from 2022 to 2025. Globally, NASDAQ led with a single mega-IPO by SpaceX (HK$75 billion), but excluding this deal, the gap between HKEX and NASDAQ was minimal—HKEX’s success came from the cumulative efforts of multiple companies, not just one giant.
More importantly, a large portion of these funds came from A+H enterprises. Eight out of the top ten IPOs in the first half were A+H listings, with 24 A-share companies contributing over 60% of the total funds raised. Chen Yiting, CEO of HKEX, stated that as of June 23, 121 A-share companies were planning to list on HKEX, making the A+H model the main driver of IPO activity.
II. Why Are A-share Leaders Rushing to List on HKEX? And Are They Willing to Accept Lower Prices?
Many A-share leaders (such as Lingyi Intelligent Manufacturing and Shengbang Co., Ltd.) are not in need of additional funds but still opted to set their H-share prices at half the level of their A-share prices. The underlying reason is the desire for globalization:
- Lingyi Intelligent Manufacturing: Supplies parts to Apple and plans overseas acquisitions, including in the server and humanoid robot sectors. Due to slow foreign exchange approval processes for cross-border M&A in the A-share market, HKEX’s H-share system allows for direct overseas payments, providing an international financial platform.
- Shengbang Co., Ltd: Relys on chip manufacturing partners like TSMC and SMIC and competes with European and American giants. Listing on HKEX helps establish an overseas sales hub to mitigate export control risks, essentially giving them an “international business card.”
- Xingji Micro-Assembly: Leads the global market in lithography equipment but has a long cash conversion cycle (up to 351 days). They need funds to expand production capacity in Southeast Asia to overcome trade barriers.
In short, their businesses have become globally integrated, and capital must follow suit. The A-share market is limited to the Chinese domestic market, while HKEX offers an international platform necessary for reaching global customers and competitors.
III. Listing Doesn’t Equal Success: Some Make Big Profits, Others Lose Half Their Value—What’s the Difference?
Despite all the excitement, outcomes varied greatly:
- Huajian Future-B: A biotech company with no products or revenue (revenue in 2025 was only HK$12.98 million, mainly from partnerships) overbid its shares by 2007 times and saw its share price drop by 50% on day one of trading. This was largely due to retail investors betting on a rise on the first day, unrelated to the company’s actual performance.
- Lingyi Intelligent Manufacturing/Shengbang Co., Ltd: These companies have stable global operations, and their listings represent a business upgrade, resulting in long-term value recognition.
More alarming statistics show that although 83% of new listings saw price increases on day one, 57% ultimately fell below their issue prices. The difference lies in the companies’ starting points:
- Good Companies: Their businesses are already globalized, and listing on HKEX allows them to expand further.
- Poor Companies: They lack products and customers, and listing on HKEX is often their last option (e.g., those not meeting A-share listing requirements).
IV. HKEX Is Changing: From Traditional Sectors to AI and Hard Technology
HKEX’s traditional pillars—finance, real estate, and consumer goods—are giving way to new sectors:
- Over 40 AI-related companies: Including companies in computing power (e.g., Beren Technologies, TianShu Zhixin), large-scale models (e.g., Zhipu, whose market value doubled within half a year), hardware (e.g., BYD, Horizon Robotics), and infrastructure (e.g., SMIC).
- The Rise of Hard Technology: Among the 21 A+H listings in the first half, 10 were from the technology sector, raising HK$59.8 billion. Some predict that AI could account for over 20% of the market weight within three years, becoming a new core sector.
However, risks are also significant: Most AI companies will only start commercializing their products by the end of 2026, and if revenues fall short of expectations, their valuations could plummet. In the future, HKEX may see a polarization, with top AI companies becoming new core assets and those that merely capitalize on trends becoming “penny stocks.”
V. Conclusion: The Changes in HKEX Reflect the Globalization of Chinese Companies
The surge in IPOs this year is a natural outcome of Chinese companies’ globalization. As businesses expand globally, they need an international platform for financing. HKEX’s transition from traditional sectors to AI and hard technology reflects the market’s belief that these industries will drive future economic growth. For investors, choosing HKEX companies requires a deeper understanding of their business models: Are their customers, supply chains, and competitors global? Only truly competitive companies can establish a foothold on HKEX.
(The entire analysis is written in plain language to make financial and business concepts accessible to a broader audience.)