Chinese Firms Make Strong Hong Kong Debuts, Capping Bumper Listings Year

Several Chinese companies that raised about HK$6.99 billion ($900 million) combined in IPOs rallied strongly on their Hong Kong debuts on Tuesday, rounding off a resurgent year for listings as the city dominated Asian equity capital markets.

The strong starts signal renewed investor confidence and optimism around tech-driven growth, underpinned by regulatory changes and robust liquidity. Market participants said the momentum could set the tone for 2026 as Hong Kong reasserts itself as a key listing venue.

Average first-day gains for Hong Kong IPOs in 2025 were about 40%, according to Hong Kong Stock Exchange. As of December 30, IPOs in the city had raised HK$285.8 billion ($36.73 billion) from 119 listings, according to HKEX.

All debutants finished the day above their IPO prices.

"This year's actually been the best we've had since Ant's IPO got pulled (in 2020)," said George Au, deputy sales director at Phillip Securities.

He added that a margin loan boom, successful listings like Mixue and CATL, and the allocation rule changes in August have all helped boost sentiment.

InSilico Medicine Cayman TopCo, a generative-AI drug discovery firm, closed up nearly 25%.

Beijing 51WORLD Digital Twin Technology, a software company, ended some 30% higher, and USAS Building System, an industrial steel-structure maker, climbed 7.6%, while Shanghai Forest Cabin Cosmetics Group, a premium skincare brand, rose more than 9%.

Shenzhen Xunce Technology and OneRobotics closed with minor gains.

"The China market warrants a deeper look at all these emerging tech, robotics, and AI companies that are tapping the Hong Kong capital market for funding and growth," said Mac El-Omari, co-founder of 6E Capital, a family office that partners with 51WORLD, noting the majority of capital being raised now is local.

New IPO launches

Three Chinese firms launched Hong Kong share sales on Tuesday, adding more than HK$9 billion to the city's IPO pipeline.

Knowledge Atlas Technology Joint Stock Co, or Zhipu AI, is marketing 37.42 million H-shares at HK$116.20 apiece to raise HK$4.35 billion.

Chipmaker Shanghai Iluvatar CoreX Semiconductor is offering 25.4 million shares at HK$144.60 for proceeds of HK$3.67 billion, while surgical robotics maker Shenzhen Edge Medical plans to sell 27.72 million shares at HK$43.24 each to raise about HK$1.2 billion. All three are scheduled to start trading on January 8.

The six debuts and three new launches highlight Hong Kong's resurgence as an IPO hub. With more than 300 companies filing to list, the momentum is set to carry into 2026.

Semiconductor designer Shanghai Biren Technology is set to debut on January 2 to kick off new listings for 2026, followed by AI startup MiniMax, which could launch its offering as soon as next week.

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