Deloitte expects Hong Kong's IPO fundraising amount to rank first globally this year, and standardizing trading lots is beneficial for liquidity

Deloitte China Southern Region Managing Partner Ou Zhenxing stated that the expected amount of new stock fundraising in Hong Kong this year will increase by 227% year-on-year to HKD 286.3 billion, ranking first in the world. During this period, a total of 114 new stocks were listed, an increase of 63% year-on-year. The United States' Nasdaq ranks second with a fundraising amount of HKD 205.2 billion; India ranks third with HKD 168.2 billion; the Shanghai Stock Exchange and Shenzhen Stock Exchange rank fifth and eighth, respectively.

Among the newly listed stocks in Hong Kong, there are 8 super-large new stocks with fundraising amounts exceeding HKD 10 billion, and 19 new stocks are "A+H," accounting for about half of the financing amount. Additionally, 3 U.S.-listed Chinese concept stocks have returned, 3 specialized technology companies have gone public, while there is only 1 new stock on the GEM.

Looking ahead to 2026, Deloitte believes that the Hong Kong new stock market is expected to set a new record for fundraising, reaching at least HKD 300 billion, with the number of new stocks reaching 160, among which 7 new stocks will have a fundraising amount of at least HKD 10 billion, including leading companies from the mainland. In addition to a large number of "A+H shares" being listed, projects from technology, media and telecommunications, healthcare and pharmaceuticals, consumer goods, international companies, and U.S.-listed Chinese concept stocks will also become the focus of the market.

When asked whether Hong Kong's new stock fundraising amount can maintain its global first position next year, Ou Zhenxing believes that Hong Kong will rank among the top three, as a fundraising amount of HKD 300 billion has a certain status internationally. However, next year, a large aerospace technology company in the U.S. is expected to go public, with a fundraising amount exceeding HKD 100 billion, so it still depends on the actual market situation.

The Hong Kong Stock Exchange (00388.HK) has recently announced a consultation on simplifying the framework for trading unit sizes. Ou Zhenxing indicated that the new proposal reflects the Hong Kong Stock Exchange's desire to boost market sentiment, as institutional investors typically hold company shares for the long term. Standardizing trading unit sizes can lower the participation threshold for retail investors and increase share liquidity, although it may make investor management more challenging for companies, the increased liquidity is also beneficial for company valuation. At the same time, the proposal is more in line with practices of other national exchanges, aligning with international standards.

The Hong Kong Stock Exchange expects that if the relevant proposals are implemented, about 25% of issuers will need to adjust their trading unit sizes. Ou Zhenxing believes that it is not very difficult for listing applicants to adjust their trading units, and the market itself already has certain expectations and discussions, so he believes that relevant service providers can adapt. As for why not "one-size-fits-all" adjust the trading unit to one share, Ou Zhenxing believes that factors such as the load on the Hong Kong Stock Exchange system and balancing the number of retail and institutional investors must be considered