Hong Kong Stock Exchange cornerstone investors half-year record: a throw of 45.2 billion, entering 36 stocks, nurturing 10 stocks that doubled.

In the first half of 2025, driven by the intensive listing of A+H shares and new economy companies in Hong Kong, the Hong Kong Stock Exchange has seen a flurry of activity. It is reported that in the first half of this year, the Hong Kong stock market completed a total of 42 initial public offerings (IPOs), raising a total of 107.1 billion Hong Kong dollars (HKD), a year-on-year increase of about 700% compared to the previous year, and a 22% increase compared to the full year of 2024. The fundraising amount currently ranks first in the world. It is worth noting that in the first half of 2025, 4 out of the top 10 global IPOs came from Hong Kong. Behind this boom, a large part is due to the deep involvement of cornerstone investors. As key participants in the Hong Kong stock IPO market, their positioning and movements in the market are not only important indicators of market enthusiasm but also largely reflect the depth of capital's assessment of enterprise value. They also play a crucial role in the success of new stock issuances and subsequent market performance, making their analysis of significant market importance. An analysis reveals three significant characteristics of cornerstone investments in the Hong Kong stock IPO market in the first half of 2025. Firstly, there is a prominent phenomenon of cornerstones clustering together. Data shows that out of the 42 companies listed in the Hong Kong stock IPO market, 36 companies have attracted a total of 189 cornerstone investors, accounting for a high percentage of 85.71%, far surpassing previous levels. The total cornerstone investment amount of 45.202 billion HKD accounts for over 42% of the total fundraising scale in the market, demonstrating strong confidence in the Hong Kong stock market by capital. Among them, 16 companies have attracted 5 or more cornerstone investors. Contemporary Amperex Technology (03750), Zhejiang Sanhua Intelligent Controls (02050), DUALITYBIO-B (09606), IFBH (06603) have attracted more than 10 cornerstone investors, with Contemporary Amperex Technology attracting as many as 23 cornerstone investors. Secondly, leading companies in various industries are favored. Companies like Contemporary Amperex Technology, Foshan Haitian Flavouring and Food (03288), Zhejiang Sanhua Intelligent Controls, Jiangsu Hengrui Pharmaceuticals (01276), MIXUE GROUP (02097) have attracted a total of 60 cornerstone investors (31.7%), dominating the top 5 investment amounts rankings, with a total investment amount of 35.14 billion HKD, accounting for over 77% of the total cornerstone investments in the first half of the year. These companies hold absolute leading positions in their respective fields: Contemporary Amperex Technology is a global leader in the power battery industry, Foshan Haitian Flavouring and Food is a leading domestic flavoring company, Zhejiang Sanhua Intelligent Controls is globally leading in refrigeration control, Jiangsu Hengrui Pharmaceuticals is a benchmark in domestic innovative drugs, and MIXUE GROUP leads the instant tea beverage market. With stable performance, strong market competitiveness, and broad development prospects, these leading companies have become preferred targets for cornerstone investors, providing reliable return expectations to capital and reducing investment risks. Thirdly, investment returns have been remarkable. As of the close of July 15th, out of the 36 companies listed in the first half of the year with cornerstone investors, 31 companies saw their stock prices rise from the issuance price, accounting for 86.1%; 21 companies saw their stock prices rise by over 50%, with companies like DUALITYBIO-B, GUMING (01364), MIXUE GROUP, TRANSTHERA-B (02617), BLOKS (00325), and Chifeng Jilong Gold Mining (06693) seeing their stock prices rise by more than 100%. This overall rise across industries, coupled with the diversification of cornerstone investors, forms a deep interconnection, where various types of capital with specialized strategies provide financial support and endorsement for companies in different sectors, collectively driving a prosperous market trend. Looking at the participants, cornerstone investors in the Hong Kong stock IPO market in the first half of 2025 exhibit a diversified characteristic, including local state-owned enterprises, foreign institutions, public funds, industrial capital, and individuals. Different types of capital have deployed their strategies based on their own logic. Professional investment institutions focus more on long-term value and growth potential of companies, while industrial capital emphasizes strategic synergies with companies. Sovereign wealth funds and local state-owned enterprises are more concerned with investment security and their role in driving regional economies or industries. Specifically, in the first half of the year, over 15 local state-owned enterprises participated as cornerstone investors in Hong Kong stock IPOs, hailing from 6 provinces such as Jiangsu, Guangdong, Henan, and Jiangxi. Local state-owned enterprises from Jiangsu have shown a high level of participation, with ZENERGY alone attracting 3 cornerstone investors with a local state-owned background, including Southeast Investment Holdings Limited from Changshu. Additionally, ZHOU LIU FU and Foshan Haitian Flavouring and Food attracted local state-owned platforms such as Shenzhen Luohu Investment Holdings Co., Ltd. and Foshan Development Holdings Limited as cornerstone investors. It is notable that local state-owned participation in investments mainly comes from funds related to the location of the company's headquarters or significant projects. Local state-owned platforms have significant advantages as cornerstone investors: on the one hand, they have close contact with companies, leading to a deep understanding of the business and shorter due diligence processes; on the other hand, for high-tech companies in the early stages of development, the participation of local state-owned funds enhances the company's credit endorsement and increases the probability of successful issuance. In terms of investment strategies, state-owned funds optimize asset allocation by actively participating in strategic placements, private placements, and other areas with better liquidity, thereby promoting local industrial development and company growth. Well-known foreign institutions have significantly increased their participation in Hong Kong stock IPO cornerstone investments, with institutions such as the Kuwait Investment Authority, Singapore Government Investment Corporation, UBS Group, and Oaktree Capital frequently appearing. These foreign institutions tend to focus on industry leaders and make generous investments. For instance, industry leaders like Contemporary Amperex Technology, Jiangsu Hengrui Pharmaceuticals, Foshan Haitian Flavouring and Food, Zhejiang Sanhua Intelligent Controls have attracted investments from multiple foreign institutions. The Kuwait Investment Authority invested a substantial amount of 3.876 billion HKD in Contemporary Amperex Technology, while the Singapore Government Investment Corporation invested 2.077 billion HKD in Jiangsu Hengrui Pharmaceuticals. UBS, as one of the most active cornerstone investors in the first half of the Hong Kong stock market, became a cornerstone investor in five companies including Contemporary Amperex Technology, Jiangsu Hengrui Pharmaceuticals, Foshan Haitian Flavouring and Food, IFBH, and BLOKS, with a total investment amount of 1.694 billion HKD. It is understood that since the second half of 2024, there has been a noticeable trend of foreign capital flowing back into the Hong Kong market. With its international advantages, the Hong Kong stock market has attracted investors from all over the world, and the proportion of foreign allocation in Chinese stocks and bonds is expected to continue to increase in the future. Industrial capital has also been actively involved in cornerstone investments in Hong Kong stock IPOs, with the presence of companies like Sinopec, Mercedes-Benz, AKESO, and CanSino, participating in popular IPO projects like Contemporary Amperex Technology, CAOCAO INC (02643), TRANSTHERA-B, and NANSHAN AL INTL (02610). Industrial capital, as cornerstone investors, not only seeks financial returns but also focuses on strategic synergies, strengthening cooperation with listed companies, sharing resources, complementing each other's businesses, and promoting industrial integration and upgrading. For example, when CAOCAO INC went public in Hong Kong, it attracted Mercedes-Benz as a cornerstone investor, leading to deep strategic cooperation in areas like new energy vehicle procurement and smart travel technology research and development. Another example is AKESO's investment in Pharmaron, leveraging the latter's small molecule research and pipeline to enhance its own layout in the field of innovative drugs, complementing large and small molecule drug research and development and promoting synergistic development in the treatment of tumors and other diseases, enhancing overall competitiveness. In terms of industry distribution, cornerstone investors have focused on sectors such as new energy, consumer goods, pharmaceuticals, biotechnology, and advanced manufacturing. This alignment with national industrial policies and market development trends reflects capital's forward-looking layout in emerging industries and continuous recognition of traditional industries' strengths. In terms of market performance, the involvement of cornerstone investors has played a significant role in stabilizing new stock prices and building investor confidence. The concentrated participation of "big-name" institutions effectively reduces market fluctuations, providing an anchor for long-term valuation of companies. This support not only manifests as short-term stock price increases but also serves as a signal of the company's long-term value through capital endorsement, strengthening investor confidence in its future development. Looking ahead, with China's continued economic growth and deepening capital market opening, the Hong Kong stock IPO market will attract more high-quality companies, and the cornerstone investment market will become more diversified and active. Local state-owned enterprises will deepen industrial guidance to promote the integration of local industries and capital markets; foreign institutions are expected to gradually increase their allocation of high-quality Chinese assets; industrial capital will actively participate in cornerstone investments based on strategic synergies to accelerate industrial innovation. The improvement of market mechanisms will promote more standardized and transparent operation of cornerstone investments, further enhancing their supportive role in the Hong Kong stock IPO market.