Hong Kong IPO Set for Changes

Today, Hong Kong Exchanges and Clearing Limited (HKEX), a wholly owned subsidiary of the Hong Kong Stock Exchange, published a consultation document seeking market opinions on a series of proposals to enhance the competitiveness of Hong Kong’s listing mechanism.

Upon closer inspection, the main recommendations include allowing all companies to submit confidential applications, relaxing rules on different voting rights, lowering the threshold for secondary listings, and more, all aimed at attracting more companies to list in Hong Kong.

Currently, the wave of companies rushing to list in Hong Kong remains vigorous, with over 480 companies queued up—an impressive lineup. This scene harks back to the golden era of IPOs after the Hong Kong listing system reforms in 2018.

Latest Moves by HKEX

IPO Race

Specifically, the key reform measures are:

1. Relax restrictions on “dual-class share structures” (different voting rights)

Previously, HKEX imposed strict financial requirements on companies with dual-class share structures, such as a market capitalization of at least HKD 40 billion or at least HKD 10 billion with revenue of at least HKD 1 billion in the most recent audited financial year.

Now, the plan is to lower the financial thresholds: suggest reducing the listing market cap requirement to at least HKD 20 billion or at least HKD 6 billion with revenue of at least HKD 600 million in the most recent audited year. This opens a wider door for innovative growth companies with novel business models that are not yet profitable but need capital support.

Additionally, the plan is to increase the maximum ratio of voting rights for dual-class shares from the current 10:1 to 20:1 (meaning management shares can have 20 times the voting power of ordinary shares).

Previously, applicants had to prove they were “innovative industry” companies to adopt dual-class share structures, but now HKEX plans to expand the scope of the制度, allowing more innovative enterprises to benefit.

2. Facilitate overseas issuers to list and lower the threshold for secondary listings

For overseas issuers, this reform focuses on optimizing secondary listing qualifications and improving rules for switching primary listings, significantly lowering the barriers for Chinese concept stocks and other overseas companies to return to Hong Kong, such as through same-share rights: the market cap threshold for testing (B) is reduced from HKD 100 billion to HKD 60 billion. The reform also provides clearer guidance for subsequent transfers and seeks market feedback on additional facilitative measures.

Behind these streamlining and relaxed conditions lies the potential for more Chinese concept stocks and companies listed in other global markets to use Hong Kong as their core global hub more smoothly.

3. Expand the scope for confidential submission of applications

Previously, only certain companies could submit Hong Kong listing applications confidentially. Now, the plan is to extend this to all applicants. This allows companies to prepare for listing more discreetly during unfavorable market conditions, avoiding early exposure of sensitive information that could impact their business.

4. Increase transparency of information

Current regulations may result in incomplete application materials being rejected. When a listing application is rejected, HKEX’s website publishes the sponsor’s identity. The latest proposal is to strengthen this mechanism: upon rejection, disclose all professional institutions involved in preparing the application (not just sponsors), including their identities and roles.

“We found through in-depth communication with stakeholders that they generally want to seize more high-quality innovative investment opportunities and hope that the listing mechanism can be more efficient and up-to-date while maintaining investor trust and confidence. Therefore, we have put forward these suggestions,” said HKEX Listing Division Head Wu Jiexuan.

This marks the first phase of HKEX’s review of its listing mechanism competitiveness, with a consultation period of eight weeks ending on May 8, 2026.

This Year

“HKEX’s gong is not enough”

Venture capital circles will surely remember 2018, when HKEX officially announced the “Introduction of the Dual-Class Share Structure and Listing of Biotech Companies,” creating the largest reform in HKEX’s 25-year history.

Since then, mainland Chinese companies have surged to list in Hong Kong, with giants like Xiaomi and Meituan continuously entering the market. There was even a remarkable scene: eight companies listed simultaneously in one day, and the gong for ringing the opening bell was not enough.

Although HKEX experienced a period of IPO slowdown afterward, from 2024 onwards, the Hong Kong IPO market has become lively again. Especially last year, amid China’s asset revaluation wave, foreign investors bet heavily on Chinese assets, sparking a new wave of listings in Hong Kong.

Remember July 9, 2025, when five companies—Lanshi Technology, Jizhi Jia, Fengtian Technology, Xunzhong Communications, and Public Oral—listed simultaneously in HKEX. By year-end, Yingxi Intelligent, Wuyi Vision, Xunce, M-Link, Woan Robotics, and Lin Qingxuan also staged “six gongs ringing together.”

Thus, 2025 marked a successful close for HKEX IPOs—119 companies listed, raising over HKD 285 billion, returning to the global top spot after four years.

Once, “finding cornerstone investors” was the biggest headache for IPOs in Hong Kong—institutions hesitated, pressured prices, or withdrew at the last minute, making some IPOs impossible to complete. Now, it’s a seller’s market. In 2025, nearly 80% of new stocks introduced cornerstone investors, with total cornerstone investments exceeding HKD 100 billion, a record high.

For example, CATL once faced “insufficient cornerstone quota,” but ultimately gathered 23 cornerstone investors, subscribing over HKD 20 billion. Behind major IPOs like Mixc Food, Hengrui Medicine, Haitian Flavouring, Sanhua Intelligent Controls, and Ying’en Biological, there is invariably a luxurious cornerstone lineup.

Retail investor enthusiasm has also been reignited. Mixc Food’s subscription was 5,258 times, with HKD 1.8 trillion in subscription amount, earning it the nickname “Hong Kong’s Three Sisters” along with Pop Mart and Lao Puo Gold; Jinye International set a record with 11,500 times oversubscription, becoming the first “ten-thousand-times oversubscribed stock” in HK stock history.

In 2025, the performance of Hong Kong stocks is vivid—average first-day gains of 37%, with a delisting rate of only 28%, the lowest in seven years. Based on the opening price on listing day, all new stocks’ first-day total paper gains could reach HKD 223,300 per lot, demonstrating strong profit potential.

Looking into 2026, the momentum continues: in just two months, new stock fundraising in HK stocks has exceeded HKD 89.2 billion, ten times the same period last year. Not to mention, AI stocks like Zhipu and MiniMax have triggered explosive surges.

A New Chapter

Behind the IPO feast, changes are underway.

On March 9, three new stocks listed simultaneously—Youleshare, Zhaowei Machinery, and Estun. Among them, Zhaowei Machinery and Estun became “A+H” dual-listed companies. However, two of the three experienced delisting—by close, Youleshare and Estun fell over 40% and 16%, respectively, breaking the record for “first-day no delisting” in HK stocks in 2026.

This scene reveals a long-standing reality of the HK market: liquidity differentiation. Although daily average turnover has rebounded above HKD 200 billion, capital flows are uneven. Tencent alone accounts for over 6% of the entire market’s daily turnover.

A more pressing challenge is the upcoming unlock wave. According to PuYin International, about HKD 1.6 trillion worth of restricted shares are expected to unlock in HK stocks in 2026, with six months of unlocks exceeding HKD 1 trillion—peaking in September, with over HKD 530 billion unlocking in a single month, accounting for 32.6% of the year’s total.

Therefore, HKEX’s current reforms are like a timely rain.

They are not just about lowering thresholds and increasing supply but aim to attract more high-quality companies with “real liquidity” appeal through rule optimization. Whether relaxing “dual-class share” thresholds to welcome tech innovators or facilitating overseas issuers’ return, the goal is to improve overall listing quality and encourage long-term capital to settle.

Recently, many investors have been urging their portfolio companies to accelerate their Hong Kong listing schedules. Meanwhile, due to certain repurchase restrictions, some founders are actively pushing internally: “Although listing in HK involves valuation and liquidity challenges, the strategic positioning is crucial.”

Tides rise and fall in their own time. As a window to the world, HKEX is brewing the next wave of upheaval.