Hong Kong's IPO boom is developing a performance problem

A gong during the listing ceremony of Contemporary Amperex Technology Co. Ltd. (CATL) at the Hong Kong Stock Exchange in Hong Kong, China, on Tuesday, May 20, 2025. Bloomberg | Bloomberg | Getty Images BEIJING — Hong Kong may be the top market globally for initial public offerings, but it also suffers from a growing trend of weak stock performance from those debuts. The Hong Kong exchange was first in the world by IPO funds raised last year — besting the New York Stock Exchange and the Nasdaq, which came second and third respectively — according to KPMG , which noted that strong momentum in 2025 continued in the first quarter of this year. More than 600 companies are waiting to list on the Hong Kong exchange as of Thursday, according to its website. However, Hong Kong IPOs broadly are underperforming. Out of 179 listings since January 2025, about half have traded lower over the past three months, according to Chinese financial-data company Wind Information. That compares with a mild drop for the benchmark Hang Seng index and gains of more than 10% for the FTSE Renaissance Global IPO Index over the same period. For those in the Stock Connect, a program which allows mainland Chinese to invest directly, the performance difference is even worse. Out of 33 Hong Kong-listed stocks that joined the Connect on March 9, over half more than doubled in price between their IPO and the last trading day before inclusion. …