HKEX captures the “hard-tech” wave as tech-focused reforms take effect

EY releases the Chinese mainland and Hong Kong IPO report for the first half of 2026 (1H 2026 or “the period”) today. The Chinese mainland and Hong Kong’s IPO activities in aggregate accounted for 33% of the global number of IPO deals and 22% of the proceeds. The HKEX contributed 17% and 14% to the global number of deals and proceeds respectively and ranked second with its HK$209.8 billion proceeds.

Global IPO activity strongly rebound in 1H 2026 with Nasdaq in the US dominating the market. Driven by a mega IPO deal and various AI-concept stocks, five of the top ten IPOs were from Nasdaq. 504 IPOs with proceeds amounted to US$192.1 billion are expected, representing a 8% decrease and a 208% increase YOY by number of deals and proceeds respectively.

A+H listings boost the proceeds with “hard-tech” becoming the new driver

84 IPOs are expected to be listed in the Hong Kong market, with proceeds reaching HK$209.8 billion in 1H 2026. This represents significant increments of 100% and 92% in number of IPO deals and proceeds raised respectively. The proceeds rise to the top among five corresponding periods. Eight of the top ten IPOs are A+H listings, reflecting that A+H listings have become the predominant channel for leading corporates to pursue cross-border fundraising. As of 23 June 2026, among all applications filed to list in Hong Kong in 2026, 121 applicants¹ are A-share companies. It underscores the strong traction in A‑share companies pursuing Hong Kong listings.

During the period, 65% of the number of deals and 74% of the proceeds are contributed by the industrial and technology sectors, which primarily comprised of “hard technology” segments such as AI large models and semiconductor chips. Eight of the top ten IPOs are also from the industrial or technology sectors. Eleven biotech companies listed under Chapter 18A, indicating a continued strong momentum in the sector.

Jacky Lai, EY² Hong Kong Capital Market Services Spokesperson, says: “The Technology Enterprises Channel (TECH) further facilitates the filing of listing applications of Specialist Technology Companies and Biotech Companies³. It helps these companies in expediting preparation timelines, reducing compliance costs and enhancing financing efficiency. It provides a fast track for the listing of companies in artificial intelligence, semiconductors and software services sectors.”

Diversifying cornerstone investors in Hong Kong IPOs

The cornerstone investors participating in Hong Kong IPOs are diversifying in type. They include institutional investors, listed companies and industry investment institutions, local governments, global sovereign funds, state-owned capital investment institutions and individual investors. 85% of the IPO offerings introduced cornerstone investors in 1H 2026.

Peter Chan, EY² Hong Kong Technology, Media & Entertainment and Telecommunications Assurance Leader, says: “International investors actively engage in IPO activity during the period. In view of rising geopolitical uncertainties, capital is increasingly flowing toward markets with political stability and greater certainty. These investors have played a constructive role in the IPO market by acting as cornerstone investors in multiple offerings. Their participations reflect the growing confidence in China’s hard assets.”

Undisturbed market stability upon trillion-level lockup expiry 

The IPO lockup periods expiring in 2026 involve shares worth over HK$1 trillion⁴, with over half to be unlocked in July, September and December. The unlocked shares are highly concentrated in the information technology (32%) and materials (28%) sectors. Amid the surge in global demand for AI hardware and a supportive policy environment for the advanced manufacturing sectors, the cornerstone investors and core shareholders in these sectors are expected to remain confident in the companies’ long-term growth prospects, further stabilizing the companies’ shareholding status.

Lai says: “Controlling shareholders, local governments, state-owned capital investment institutions and long-term strategic investors predominant in the current expiry wave. Despite the biggest tally of the lockup expiry scale on record, the actual sell-off pressure will far less than it seems on numbers, as the mentioned shareholders typically place greater emphasis on long-term value, industrial synergies and favorable policies.”

Listing regime enhancement continuous alongside sustained IPO momentum 

The HKEX continues to enhance Hong Kong’s listing regime with a dual approach of relaxing listing thresholds while strengthening quality control. Under the current AI heat, the effectiveness of TECH has gradually revealed. In addition, the HKEX published a consultation paper in the first quarter that proposed reducing the market capitalization threshold for listings with a weighted voting rights structure, relaxing the qualification requirements for secondary listings and expanding the eligibility of confidential filing to all new applicants. These proposals aim to attract more new economy companies, including those in AI and biotech sectors.

On the other hand, the Securities and Futures Commission of Hong Kong and the HKEX have implemented more stringent supervision on application materials. The abovementioned consultation paper also proposed a stricter Return Mechanism, which also applies to confidential filings, to display the identities and roles of the professional parties. Solid pre-submission preparations and alternatives to address varying market dynamics have become the key for corporations to navigate market fluctuations and capture the optimal issuance window.

In the second half of the year, it is expected Hong Kong IPO activity will continue to flourish, with a pattern of concentration in high-growth, hard-tech sectors. The A+H model is likely to remain a key theme, alongside a pipeline of companies from AI-related industries, biotech, new energy and new consumption sectors planning to list in Hong Kong.

A-share IPO improves in quantity and quality with further proceeds growth

During the period, the pace of A-share issuance accelerates steadily. 81 IPOs with proceeds of RMB105.7 billion are expected to list on the A-share market. In particular, the BSE has seen a significant increase in number of IPOs. The average proceeds of the overall A-share market increased by 49% to RMB1.305 billion. Up to 60% of the deals raised less than RMB1 billion but the increase in mid-to-large-size deals that raised more than RMB1 billion supported the rise in the average proceeds. The ten biggest IPOs⁵ raised a total of RMB31.2 billion, representing an increase of 80% YOY and contributed to 44% of the aggregate proceeds during the period. Industrials, technology and materials sectors are expected to rank as the top three sectors in terms of number of IPO deals while REITs are expected to rank second in terms of proceeds. Technological manufacturers have been leading the market during the period, demonstrating the nation’s tilted support for the advanced manufacturing and “hard-tech” sectors seeking public market financing. Under a more stringent regulation, it is believed A-shares will improve in quality with a steady issuance pace. The implementation of STAR and ChiNext reforms will fortify market inclusiveness and vibrancy. Regulators have continued to work on retail investors protection regimes through stringently combating falsified financial statements and strictly enforcing delisting mechanism, to establish a virtuous ecosystem with a “survival for the excellence” principle.

Two Chinese companies listed in the US market

During the period, two Chinese companies pursued listing in the US market and raised US$59.50 million. On 14 May 2026, Nasdaq's tightened listing requirement for Chinese-concept stocks passed with SEC’s express approval. Potential Chinese-concept issuers have been looking for alternatives to IPO listing, like SPAC and OTC.

1. Confidential filings are not included
2. Ernst & Young (EY member firm in Hong Kong)
3. “Specialist Technology Companies” and “Biotech Companies” have the same meanings ascribed to them under the Listing Rules or the Guide for New Listing Applicants
4. Please refer to the Chinese mainland and Hong Kong IPO report for the first half of 2026 for detailed figures
5. Real estate investment trusts (REITs) are not included

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About the data

The global data presented in the press release are based on publicly available information as of 19 June 2025 and rest of them based on publicly available information as of 23 June 2026. Sources of data include EY statistics, Wind Information, the China Securities Regulatory Commission, Eastmoney, Hong Kong Stock Exchanges and Nasdaq.