The quality of Hong Kong IPO prospectuses is improving, but there are still companies advertising and riding on the AI concept.

At the recent Hong Kong Stock Exchange Future Technology Summit, the relevant person in charge of the Hong Kong Stock Exchange, Liu Ying, stated that some companies' draft prospectuses have issues such as exaggerated language, unclear introduction of business models, embellished industry rankings, and vague revenue recognition methods. These quality issues in prospectuses will seriously slow down the IPO approval process. As early as the end of 2025, the Hong Kong Securities and Futures Commission and the Hong Kong Stock Exchange jointly issued a letter exposing the quality issues in information disclosure in Hong Kong IPO prospectuses, both pointing to the same underlying concern. A review of a large number of IPO prospectuses by reporters found that some companies have made significant revisions in their re-submitted prospectuses, showing clear improvements in quality. However, there are still some companies using a lot of "advertising-style" language in prospectuses submitted recently. In addition, with the arrival of the AI wave, many companies especially like to ride on the "AI concept" in their prospectuses, but these companies actually only use certain AI technologies in their operations, while their essence remains unchanged.