AI Deal Surge Drives Hong Kong Fundraising to a Record Summer
Hong Kong bankers did not get a summer break. An artificial intelligence-led rush for capital pushed share sales to a record in the July-to-September period,
Hong Kong bankers did not get a summer break. An artificial intelligence-led rush for capital pushed share sales to a record in the July-to-September period, even as the city’s stock market sold off.
Initial public offerings, placements and block trades raised $47.5 billion over the quarter, the biggest haul ever for that stretch, according to Bloomberg data. The pace lifted year-to-date fundraising above $92 billion and put Hong Kong within reach of the $112.5 billion record set in 2021.
AI at the center of the rebound
AI has sat at the heart of Hong Kong’s deal revival, but this summer brought a sharper surge. Mainland Chinese companies returned to the market faster and in larger sizes as they sought money to expand in the fast-growing sector.
Alibaba Group Holding Ltd’s $10.2 billion follow-on offering was the biggest transaction in the period. Zhongji Innolight Co also drew heavy interest, raising almost $8 billion in Hong Kong’s largest listing in nearly seven years. Other companies tapped investors as well, adding to a deal flow that kept bankers busy through the season.
The strength in equity fundraising has helped offset a weak patch in the market. Even so, investors and issuers are turning more cautious after a recent jump in bond yields and poor post-deal performance in some transactions.
Momentum holds, but nerves rise
Hong Kong’s first nine months still looked strong by any measure. Financial Secretary Paul Chan Mo-po said on Sunday that 116 companies listed in the city during the period and raised more than HK$388 billion, more than doubling the amount from a year earlier and exceeding the full-year total for 2025.
Chan also said average daily turnover in the stock market rose 6.4% year-on-year to HK$272.9 billion, or $34.8 billion, in the first nine months. He argued that short-term volatility, driven by long-term U.S. bond yields reaching a 24-year peak and raising global economic worries, would not derail wider trends in international asset allocation and supply chain restructuring.
The city’s role in global capital markets has drawn fresh attention from abroad. Deloitte expects Hong Kong to be the world’s second-largest IPO market this year, a sign of how much the fundraising revival has reset expectations.
For now, though, the tone is less exuberant than it was in midyear. The summer haul was historic. The next test is whether the pipeline can keep moving if yields stay high and recent weak deal performance keeps investors choosy.
Source: bloomberg.com
