Hong Kong’s initial public offering market wrapped up the first half of 2026 with a stellar performance as four companies made their trading debuts on the final trading day of June.

The number of new listings reached a five-year high, and experts predict the full-year fundraising proceeds to 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 are 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 expects both segments to remain the primary drivers of IPO activity in the second half of 2026.

Eight companies have made their trading debuts on the Hong Kong stock exchange across a range of sectors since Monday, including semiconductors, robotics components, consumer electronics, and biomedicine.

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Louis Lau, partner and head of the 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.

Lau said that Hong Kong ranked second globally in IPO proceeds during the first half. 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 the world’s second-largest IPO hub 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 accounting firm said the bourse operator’s ongoing competitiveness review of the listing framework is expected to enhance Hong Kong’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.

The benchmark 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.

HSI 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.

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Kenny Ng, a strategist at China Everbright Securities International Co, said the volatility was driven by multiple factors. Geopolitical tensions in the Middle East dragged down 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 is optimistic about the second half. 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.