{"id":118788,"date":"2025-05-21T03:47:13","date_gmt":"2025-05-21T03:47:13","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/118788\/"},"modified":"2025-05-21T03:47:13","modified_gmt":"2025-05-21T03:47:13","slug":"hong-kong-ipo-market-rebounds-catl-sets-record-with-hk35-7-billion-listing","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/118788\/","title":{"rendered":"Hong Kong IPO market rebounds: CATL sets record with HK$35.7 billion listing"},"content":{"rendered":"<p class=\"small\">Source: Hong Kong Exchanges and Clearing Limited, as of 20 May 2025<\/p>\n<p><strong>Regulatory impact on Hong Kong listings<\/strong><\/p>\n<p>In 2020, Chinese regulators shocked markets by halting Ant Group&#8217;s HK$289 billion IPO just before listing, citing concerns about systemic financial risks from rapidly expanding fintech operations. This unprecedented move signalled the beginning of broader reforms.<\/p>\n<p>Shortly afterward, the central government announced sweeping regulatory changes, including anti-trust investigations and property speculation crackdowns. These uncertainties, combined with disappointing stock market performance, reduced new listings between 2021 and 2023.<\/p>\n<p>The recent uptick in IPO activity correlates with the Chinese government&#8217;s stimulus package in 2024, which has catalysed a strong <a href=\"https:\/\/www.igcom\/en_EN\/market-training\/glossary-trading-terms\/market-rally-definition.html\" target=\"_blank\" rel=\"noopener\">market rally<\/a>. This improvement has created a more favourable environment for companies considering public listings.<\/p>\n<p>US-China relations have also influenced listing decisions, with some Chinese companies currently listed in the US seeking Hong Kong listings to mitigate <a href=\"https:\/\/www.igcom\/en_EN\/market-training\/glossary-trading-terms\/risks-definition.html\" target=\"_blank\" rel=\"noopener\">risks<\/a>. These companies aim to protect themselves against potential US delisting amid escalating geopolitical tensions.<\/p>\n<p><strong>Performance of newly listed stocks<\/strong><\/p>\n<p>Contrary to common belief that newly listed stocks generally perform well short-term, our analysis of 464 main board listings since 2020 (excluding transfers from the Growth Enterprise Market) reveals a more nuanced picture. On average, 61% of new listings trade higher than their IPO price on the first day. This percentage improves during years of stronger broader market performance, reaching 67% in 2020 and 64% in 2024.<\/p>\n<p>However, when extending the holding period to one week after listing, the proportion of profitable new listings drops to 53%, and further declines to 49% after one month.<\/p>\n<p>This trend reinforces the need for investors to look beyond initial excitement and evaluate the long-term potential of new listings. Investors should conduct thorough research before participating in IPOs. Understanding a company&#8217;s fundamentals (including its business model, strategic growth plans, and valuations) alongside the macroeconomic environment remains essential when trading newly listed stocks.<\/p>\n<p>Figure 2: Breakdown of new listings by profitability on the first day of trading<\/p>\n","protected":false},"excerpt":{"rendered":"Source: Hong Kong Exchanges and Clearing Limited, as of 20 May 2025 Regulatory impact on Hong Kong listings&hellip;\n","protected":false},"author":2,"featured_media":118789,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3091],"tags":[53167,51,53160,53163,53159,53165,53162,53164,53161,53168,2441,53166,16,15],"class_list":{"0":"post-118788","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-ant-group","9":"tag-business","10":"tag-catl-listing","11":"tag-chinese-companies-listing","12":"tag-hong-kong-ipo-market","13":"tag-hong-kong-ipo-pipeline","14":"tag-hong-kong-stock-exchange","15":"tag-ipo-first-day-returns","16":"tag-ipo-performance-analysis","17":"tag-mainland-listings","18":"tag-markets","19":"tag-regulatory-impact-on-ipos","20":"tag-uk","21":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114543777861466447","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/118788","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=118788"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/118788\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/118789"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=118788"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=118788"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=118788"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}