Hong Kong IPO Cornerstone Investors Have Subscribed HKD 40 Billion This Year

Cornerstone investment in Hong Kong initial public offerings has emerged as a focal point for diverse capital sources. According to iFinD data compiled by Tonghuashun, as of February 26, twenty‑four newly listed companies have collectively introduced 264 cornerstone investors, with aggregate subscriptions of approximately HKD 40 billion. Fifteen of those listings secured more than ten cornerstone investors each, with Shanghai Biren Technology Co., Ltd. and Shanghai Tianshu Zhixin Semiconductor Co., Ltd. attracting 25 and 19 cornerstone investors respectively.

The sectoral preferences of these cornerstone investors reveal a pronounced bias toward semiconductors, artificial intelligence and advanced manufacturing, which together account for over 70% of participation and underscore sustained capital allocation to hard‑technology themes. For example, among the cornerstone backers of AI chipmaker Aixinyuan Zhi Semiconductor Co., Ltd. is Qingdao Guanlan Investment Management Co., Ltd., illustrating industrial capital’s strategic positioning within the domestic AI chip ecosystem.

Cornerstone participants comprise long‑term international funds from Europe, North America and the Middle East as well as domestic equity investment vehicles. State‑linked equity funds tend to prioritize local enterprises and strategic emerging industries; Wuxi Jinchou Investment Management Co., Ltd. participated as a cornerstone investor in Wuxi Lead Intelligent Equipment Co., Ltd. Private equity funds, by contrast, frequently target high‑growth opportunities and pursue diversified asset allocations, leading them to participate actively in Hong Kong IPO cornerstone subscriptions. Notable examples include Shanghai Greenwoods Asset Management Co., Ltd. acting as a cornerstone investor in GigaDevice Semiconductor Technology Co., Ltd., and Shanghai Gaoyi Asset Management Partnership (Limited Partnership) subscribing to Beijing Zhipu Huazhang Technology Co., Ltd., reflecting top private managers’ continued commitment to China’s new‑economy assets.

Market practitioners interviewed attributed domestic equity funds’ active involvement to several factors: the high growth potential of new‑economy sectors, valuation recovery in the Hong Kong market, long‑term allocation needs and potential industrial synergies. One private equity investor observed that state‑owned funds emphasize strategic guidance and industry coordination, whereas private funds focus on market‑oriented returns and portfolio diversification.

For domestic equity investors, cornerstone allocations in Hong Kong IPOs also broaden exit options. Zhang Zhengyi, partner at Tongli Law Firm, told Securities Daily that cornerstone investors may exit proactively after the lock‑up period through secondary‑market mechanisms such as auctioned trades or block transactions, or exit passively via corporate actions like takeover offers or privatizations. Secondary‑market reductions remain the predominant exit route, subject to the Hong Kong Exchange’s disposal rules.

Compared with the typical five‑ to seven‑year exit horizon in primary markets, the usual six‑month lock‑up for Hong Kong cornerstone shares materially enhances liquidity. LiveReport data show that in 2025 sixty‑five Hong Kong‑listed companies experienced cornerstone share unlock events involving 304 cornerstone investors. Based on year‑end closing prices, the unlocked holdings were valued at HKD 105.8 billion. Measured at issue price, cornerstone subscriptions totaled about HKD 67.8 billion, implying an average return of approximately 56.2% for cornerstone investors.