Hong Kong raised nearly six times as much in IPOs in the first quarter as it did a year earlier, KPMG said — keeping the city top of global IPO fundraising. Financial Secretary Paul Chan told reporters IPO proceeds in the city exceeded HK$140 billion (about US$17.9bn) by early April. LSEG data also pointed to strong main‑board activity driven by technology and AI floatings and hefty first‑day gains.

If sustained, the surge would strengthen Hong Kong's role as a listings hub for mainland technology and AI firms that face constraints in US markets, shifting more international capital to the city. Numbers and where they come from Paul Chan, Hong Kong’s Financial Secretary, told reporters that IPO proceeds in the city exceeded HK$140 billion by early April (about US$17.87bn), leaving Hong Kong first for global IPO fundraising. Independent market reviews paint a compatible picture for the quarter. KPMG’s Chinese Mainland and Hong Kong IPO Markets 2026 Q1 Review recorded HK$109.9 billion raised in the first three months of the year across 40 new listings — nearly six times the amount raised in the same period last year, with roughly triple the number of transactions. Data providers tracking main‑board listings also showed robust activity. LSEG recorded 37 companies raising about US$13.26 billion on Hong Kong’s main board in Q1. Differences in headline totals reflect dataset scope (main board only versus whole market) and varying cut‑off dates, but they point to a clear surge rather than a modest uptick. Who’s listing and why it matters Technology and specialist listings accounted for a large share of funds raised: KPMG said nearly 80% of Q1 proceeds came from A+H and specialist technology floatings. A number of AI labs, chip firms and biotech companies used Hong Kong this year to tap international capital. Several AI‑related names posted eye‑catching debuts: exchange calculations for 2025 listings showed an average first‑day return of about 40%, and some 2026 floatings have posted far larger moves — including startups that saw shares surge many times over their offer price. That tech‑heavy pipeline plus oversized opening‑day performance has attracted global attention. Drew Bernstein, co‑chairman of Marcum Asia, described the strategy bluntly: Hong Kong and Beijing are aiming to replicate what Nasdaq did for the early internet era by creating a home for Chinese AI firms to raise international capital. Market mechanics: turnover and investor appetite Alongside IPO proceeds, trading volumes have picked up. Chan said average daily turnover on the Hong Kong Stock Exchange exceeded HK$280 billion since March, slightly above the HK$276.7 billion daily turnover in Q1. Higher turnover reflects both primary‑market issuance and renewed secondary trading in recent listings. Investors’ willingness to back loss‑making tech startups at high valuations has been notable. Several recent listings reported modest revenues while burning cash, yet attracted strong demand at launch and immediate secondary buying, boosting initial and short‑term returns. Market participants point to a few drivers: a longer‑term shift in investor appetite for AI and advanced‑tech exposure; geopolitics and U.S. listing constraints for some Chinese firms; and advantages in valuation and faster domestic adoption of AI. Mohit Kumar, Jefferies’s chief macro strategist, highlighted valuation benefits and rapid local AI adoption as reasons for investor interest.

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Paul Chan added that average daily turnover on the Hong Kong Stock Exchange exceeded HK$280 billion since March.

This article was created with AI assistance.