FINANCE

Analysis: Why Hong Kong’s New IPO Reform Remains Unproven

Published: Feb. 5, 2026 3:38 p.m. GMT+8

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Hong Kong reclaimed its crown as the world’s top IPO market in 2025. More than 100 companies listed, raising over HK$280 billion ($40.4 billion) — more than triple the previous year.

The surge followed a deep slump. Fundraising had fallen to HK$46.3 billion in 2023, a two-decade low that pushed Hong Kong down to sixth globally. Activity began to recover in late 2024 and accelerated through 2025, driven largely by Chinese mainland companies seeking Hong Kong listings.

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Hong Kong reclaimed the top global IPO spot in 2025, raising over HK$280 billion from 100+ listings, up from HK$46.3 billion in 2023.
Major reforms in August 2025 gave institutional investors more allocation power and reduced retail influence, boosting institutional-led pricing.
Although first-day gains were significant, risks increased with institutional concentration, and by November some IPOs traded below offer prices as momentum cooled.

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What Happened When

2023：: Fundraising in Hong Kong's IPO market fell to HK$46.3 billion, a two-decade low, dropping the city to sixth globally.

Late 2023：: The FINI (Fast Interface for New Issuance) digital settlement platform was launched, changing retail behavior in the IPO market.

Late 2024：: IPO activity in Hong Kong began to recover after the previous slump.

2025：: Hong Kong reclaimed its position as the world’s top IPO market with more than 100 company listings, raising over HK$280 billion.

August 2025：: Regulators implemented a sweeping overhaul of IPO pricing and allocation rules, scaling back retail clawbacks and shifting pricing power toward institutional investors.

AI generated, for reference only