A fresh wave of Chinese listings is starting to breathe life into Hong Kong's equity market. IPOs have raised HK$77 billion ($9.9 billion) through May—marking the busiest start to a year since 2021—anchored by standout debuts like battery giant Contemporary Amperex Technology Co. Market participants are now eyeing what's next, with names like chipmaker Will Semiconductor and EV player Seres Group preparing to launch. While overall turnover remains muted, the renewed pipeline could gradually revive investor interest in a market that's still 25% off its 2021 highs, despite a 16% rebound so far this year.
Some investors are starting to draw comparisons to the early 2000s IPO surge that preceded a multi-year rally. Fund managers point to the outsized gains of recent entrants—Mixue Group, Guming Holdings, and Bloks Group have more than doubled since listing—as a sign that sentiment may be shifting. Fast-fashion heavyweight Shein is now reportedly weighing a move to Hong Kong for its long-awaited IPO, adding fuel to the optimism. Yang Ruyi, of Shanghai Prospect Investment Management, said these listings are “fundamentally reshaping the DNA of the market,” suggesting Hong Kong is evolving beyond a simple offshore access point into a pricing hub for China's next-gen economy.
That said, not everyone's calling a comeback just yet. Liquidity remains a key watchpoint, and the risk of IPOs siphoning attention away from existing names could dampen broader momentum. Still, structural catalysts are emerging. The Hang Seng Index now trades at 10.3x forward earnings—above its three-year average—and Hong Kong Exchanges & Clearing (HKXCF, Financial) is up 36% YTD. Inclusion of new listings in global benchmarks like MSCI could be a meaningful trigger for inflows. For investors betting on a longer-term China tech and consumer story, this IPO cycle may be the market's next proving ground.
