Hong Kong’s benchmark Hang Seng Index extended its upward momentum on Tuesday, finishing September with the strong debut of three initial public offerings (IPOs) from Chinese mainland companies.

Zijin Gold, the international arm of China’s biggest miner Zijin Mining Group Co, jumped 68.5 percent, pushing the company’s market valuation above HK$316 billion ($40.6 billion).

The listing, which aimed to raise HK$24.98 billion, ranks as Hong Kong’s second-largest IPO this year, trailing only electric vehicle battery giant Contemporary Amperex Technology Co.

READ MORE: Zijin mining’s soaring Hong Kong rally fuels record premium

Joining Zijin Gold in striking the gong at Hong Kong Exchanges and Clearing were Shenzhen Hipine Precision Technology Co, a gold watch manufacturer, and Pateo Connect Technology (Shanghai) Corporation, which specializes in vehicle technology services.

Hipine made an explosive debut, surging over 180 percent at the opening and peaking at nearly a 340 percent gain during the morning session. The stock ended the day with a 258 percent increase, closing at HK$106.  

Conita Hung, a member of the executive committee at the Hong Kong Institute of Financial Analysts and Professional Commentators, said Zijin Gold’s gains exceeded her expectations. With gold prices hitting historic high levels, investors who secured shares of the company are more willing to hold them as long-term investments rather than selling on the first trading day, she said.

Zijin Gold’s strong debut is in line with the trend of robust IPO performance in the city, according to Kenny Ng, a strategist at Everbright Securities International. Recent IPOs in the Hong Kong market have generally delivered powerful results, which has fueled investor enthusiasm, he said.

The HSI climbed 0.87 percent, or 232 points, to close at 26,855 on Tuesday, capping a month in which the benchmark gained more than 1,200 points.  

Over the past month, the Hong Kong stock market has sustained upward momentum with only minor pullbacks, Ng said, as multiple factors had given it a boost, such as the strong performance of the mainland’s A-share market, optimism over interest rate cuts, and renewed investor confidence following upbeat half-year earnings reported by listed firms in August.

Hung said she expects the HSI to climb to 28,000 by year-end, driven by rapid expansion of the global artificial intelligence industry, and robust capital flows from mainland and international investors. The market is also closely watching Beijing’s policy meetings in the fourth quarter for signs of new economic stimulus, she added.

READ MORE: Zijin Gold delays $3.2b IPO as typhoon pummels Hong Kong

Hong Kong’s stock market has outperformed many of the world’s major markets this year, Financial Secretary Paul Chan Mo-po said on Monday. The HSI has risen more than 30 percent in the year to date, while the Hang Seng Tech Index, which tracks 30 major technology firms, has surged over 40 percent. The Hang Seng Biotech Index has more than doubled.

Chan attributed the strong performance to breakthroughs by Chinese technology companies in fields like AI and biopharmaceuticals, which have reignited global investors’ confidence in their value.

At the same time, many international investors who had previously underweighted Hong Kong and mainland markets are increasing their allocations, as geopolitical factors have made them aware of the need to diversify portfolios to reduce risks and capture growth opportunities in different regions, Chan said.

Contact the writers at irisli@chinadailyhk.com