Goldman Sachs: The IPO market in Hong Kong has strong momentum this year, with the total fund-raising expected to reach HK$468 billion for the whole year.

The Hong Kong new stock market continues to flourish. According to media reports, Goldman Sachs predicts that the amount of new stock funds raised in Hong Kong in 2026 will reach 60 billion US dollars (equivalent to about 468 billion Hong Kong dollars), together with post-listing refinancing, it is estimated that the total equity financing for the year will reach 110 billion US dollars. Goldman Sachs explained that this round of IPO recovery is mainly benefited from the market's shift to "hard technology" and the "new economy" sectors such as biotechnology and new consumption, while the large number of A-share companies listing in Hong Kong also drives market growth. Goldman Sachs stated that the IPO momentum in the Hong Kong market will accelerate in 2026, and the recovery of IPO activities will drive HKEX and Chinese securities firms with more exposure to offshore businesses to achieve better growth. Goldman Sachs further pointed out that the market has enough funds to absorb new stock issuances, including 180 billion US dollars in corporate distributions (dividends and buybacks), 200 to 300 billion US dollars in global long-term investor capital reallocation, 200 billion US dollars in southbound fund inflow, and the continued active participation of retail investors. However, Goldman Sachs also warned that factors such as the Middle East geopolitical situation and high US interest rates could impact company profits and valuations, thereby affecting fundraising activities. Additionally, the record-breaking IPO activity in the United States may have a short-term crowding-out effect on global capital. According to the approval progress, Hong Kong is expected to see a record high in new listings in the second half of the year, with about 400 companies currently in queue for listing. Among them, 104 companies are already listed on the A-share market, including 43 large-cap stocks with market values exceeding 5 billion US dollars; and 15 companies are foreign-owned enterprises with holdings exceeding 5% of the A-share market value. If we only consider the first quarter of 2026, cornerstone investors contributed about 40% of the IPO funds, and sovereign wealth funds accounted for 1.2%.