Experts predict city’s full-year proceeds to rank among the top three in the world
Hong Kong’s initial public offering market wrapped up the first half of 2026 with a stellar performance, reaching a five-year high in both the number of new listings and value.
Experts forecast that the full-year fundraising proceeds will rank among the top three globally.
Hong Kong welcomed 85 new listings in the first half of the year, raising HK$209.9 billion ($26.76 billion), according to a KPMG report released on Tuesday. Both figures represented the strongest first-half performance in five years, surging 102 percent and 92 percent year-on-year respectively.
A- and H-share listings accounted for 24 debuts, surpassing the 19 recorded in all of 2025. Thirteen companies listed under Chapter 18C — a framework introduced in 2023 for high-growth specialist technology firms. These two categories together contributed more than 70 percent of total fundraising proceeds in the first six months. KPMG said it expects both segments to remain the primary drivers of IPO activity in the second half of 2026.
Since Monday, eight companies have made their trading debuts on the Hong Kong stock exchange, spanning sectors such as semiconductors, robotics components, consumer electronics, and biomedicine. Four companies made their trading debuts on Tuesday alone, the final trading day of June.
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Louis Lau, partner and head of Hong Kong capital markets group at KPMG China, said, “We are optimistic about the outlook for the Hong Kong IPO market, driven by the thriving IPO activities and a robust pipeline.”
He added that the notable surge in Chapter 18C listings is particularly encouraging, as these listings play a crucial role in fostering a high-tech ecosystem in Hong Kong.
Hong Kong ranked second globally in IPO proceeds during the first half, trailing only the Nasdaq stock market, where SpaceX held the largest IPO in history in June. Lau said that buoyed by positive market sentiment, the city is on track to raise HK$350 billion for the full year, and is well positioned to remain one of the world’s leading IPO hubs by the end of the year.
KPMG said the Hong Kong market has a record-breaking pipeline of over 500 active IPO applicants. Of these, 443 were publicly filed — a 52 percent increase from the beginning of the year.
Looking ahead, the firm said that an ongoing competitiveness review of Hong Kong’s listing framework is expected to enhance the city’s appeal as a listing destination. The second phase of consultation, set to start later this year, will focus on reducing the administrative burden for issuers while emphasizing strong corporate governance and investor protection, after the first phase concluded in May.
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The Hang Seng Index experienced significant volatility in the first half of the year, retracing some gains after briefly climbing above the 28,000-point level earlier this year.
The benchmark index rose 0.76 percent on Thursday to close at 23,055. The Hang Seng Tech Index dipped 0.4 percent, and the Hang Seng China Enterprises Index advanced 0.72 percent.
Kenny Ng, a strategist at China Everbright Securities International Co, attributed the volatility to multiple factors. Geopolitical tensions in the Middle East weighed on global equities, and despite strong global enthusiasm for artificial intelligence during the second quarter, Hong Kong’s tech index contains a relatively low concentration of AI-focused components, leading to capital outflows.
Nevertheless, Ng said he remains optimistic about the second half of the year. He said that the Chinese mainland’s sustained economic recovery, coupled with increasingly standardized regulatory policies for Hong Kong stocks, will serve as positive catalysts.
“Hong Kong stock valuations are already at depressed levels. I expect the benchmark to regain the 28,000-point level in the latter half of the year,” he added.
Contact the writers at akirawang@chinadailyhk.com
