HK IPO Cornerstone Subscriptions Cool Down; September Share Drops to 31.18%

In the first three quarters of this year, the HK IPO market saw a surge in supply, while the valuation gap between primary and secondary markets widened. According to Wind data, HK IPO fundraising exceeded HK$380 billion in the first three quarters, with cornerstone subscriptions accounting for around 40% (over HK$150 billion). However, enthusiasm from cornerstone investors has recently cooled, with their share of subscriptions falling to 31.18% in September, marking the lowest single-month figure this year. Meanwhile, investment firms previously active in the primary market are showing a declining frequency of participation in new IPO cornerstone investments. Multiple industry insiders noted that as the probability of HK IPOs trading below issue price continues to rise, cornerstone investments—once seen as the 'ballast stone' for IPO issuances—are cooling down. The market is moving away from the inertia of 'buying every new listing' and instead strictly screening targets based on quality, earnings certainty, and sector scarcity. (Securities Times)