Hong Kong's record IPO year: what the A+H wave means for investors

Context

Hong Kong's IPO market spent 2022 and 2023 in a slump, weighed down by higher interest rates, weak mainland sentiment and geopolitical tension. A recovery that started in 2024 gathered pace in 2025 and has accelerated sharply in 2026.

Three forces have worked together. First, mainland regulators have supported leading A-share companies raising capital in Hong Kong to fund international expansion. Second, HKEX and the SFC have streamlined the listing process, including faster review timetables for eligible A-share companies under a joint statement issued in October 2024. Third, international investors have returned to Chinese technology and consumer stocks.

What happened

KPMG China's review of the first three quarters of 2026, published in early October, found that Hong Kong IPOs raised more than HK$388 billion from 116 listings, a record for a nine-month period. Proceeds more than doubled year on year.

A+H listings. Companies already listed on mainland exchanges completed 37 Hong Kong listings, contributing nearly 70% of total proceeds. The number of A+H deals more than tripled and their proceeds rose by more than 180%. KPMG said this showed Hong Kong's importance as an offshore fundraising platform for mainland enterprises seeking international capital.

Technology. More than half of proceeds came from companies in high-tech sectors such as AI, semiconductors and robotics. Specialist technology companies listed under Chapter 18C raised HK$36.2 billion across 19 listings, compared with eight such listings over the previous three years combined.

Pipeline. HKEX's monthly report shows that, as of 30 September 2026, 590 applications were under processing and 28 had been approved pending listing. Facing this volume, HKEX announced on 21 August a temporary waiver extending the validity of eligible listing applications from six to 12 months. KPMG said full-year proceeds could approach HK$500 billion if conditions remain supportive.

Rule changes. The boom is happening alongside reform. The first phase of HKEX's listing competitiveness review took effect on 24 July, lowering thresholds for weighted voting rights and widening confidential filing. A second-phase consultation, covering notifiable and connected transactions and spin-offs, was published on 21 September. The 2026 Policy Address noted that IPO funds raised had already exceeded the 2025 total by the end of August.

Why it matters

For Hong Kong, a strong IPO market supports its position as an international financial centre and feeds activity across banking, legal, accounting and asset management. It also strengthens the city's role as the main offshore capital market for mainland companies.

For investors, A+H listings have a distinctive feature: the same company trades in two markets. Hong Kong H shares have often traded at a discount to A shares, sometimes significant. That gap reflects differences in investor base, liquidity, currency and access, and it can create opportunities as well as traps.

Large issuance also raises questions. When many companies list at once, investor attention and capital are spread thinner. Some IPOs will perform well; others may struggle once cornerstone lock-ups expire. Regulators have also signalled attention to quality, including the enhanced return mechanism naming professional parties when applications are returned.

For A+H issuers, the Hong Kong offering price is usually set with reference to the A-share price, and the H shares are then compared continually with the onshore market. Shifts in mainland sentiment can therefore move Hong Kong prices quickly, while the H-share discount itself can widen or narrow for reasons unrelated to the company's performance.

Implications for investors, families and businesses

For individual investors, the abundance of deals makes selection more important than participation. Questions about valuation, use of proceeds, cornerstone investors and lock-up periods are worth asking for every IPO.

For families and family offices, the IPO wave offers access to leading mainland companies at potentially attractive valuations relative to A shares. It also creates concentration risk if portfolios lean too heavily on Chinese equities.

For mainland companies, the window is open, but the review queue is long. Preparation, including governance, financial reporting and international investor communication, matters more than timing alone.

For Hong Kong professionals, demand for sponsors, lawyers, auditors and investor relations specialists is high, and so are regulators' expectations of quality.

Questions to consider

• How does an H share's price compare with its A share, and why?
• Who are the cornerstone investors, and when do their lock-ups expire?
• How will the company use the proceeds, particularly for international expansion?
• Is our portfolio becoming too concentrated in recent IPOs or one sector?
• For companies considering a listing: are we ready for international investor scrutiny?

Closing

Hong Kong's IPO revival is real and broad-based, driven by A+H listings and technology issuers. For investors, the task now is discipline: the market offers more opportunities than at any time in years, but not every listing will reward the patience of those who buy in.