The AI Frenzy Drives Hong Kong Stock Sales to Highest Level in 5 Years

SadaNews - Hong Kong stock sales soared to their highest level in five years during the first half of 2026, as investor enthusiasm for the AI boom outweighed the effects of a weak stock market and regulatory hurdles.

Data collected by "Bloomberg" showed that initial public offerings, private placements, and large-volume deals raised nearly $44 billion in Hong Kong, a 29% increase compared to the same period last year. Giant Chinese companies, including "Contemporary Amperex Technology Co. Ltd" and "Victory Giant Technology Huizhou Co.", led this activity through multi-billion dollar listings. Hong Kong accounted for the largest share of the total $122 billion raised in the Asia-Pacific region.

These deals came despite a 12% decline in the "Hang Seng" index this year, the launch by Beijing of measures that could slow the pace of new listings, and the war in the Middle East that has intensified inflationary fears. Nonetheless, Hong Kong has emerged as a key hub for Chinese companies operating within the AI supply chain to raise funding in the race to expand production capabilities to compete with U.S. companies. Sentiment remains strongly positive, with more companies ready to make new deals.

James Wang, Head of Equity Capital Markets in Asia ex-Japan at "Goldman Sachs", said: "We expect to see increased activity in Greater China during the second half of the year." He added, "The AI ecosystem remains one of the key drivers of capital formation."

New Listings on the Way for Hong Kong

Among the companies preparing for listing is "Luxshare Precision Industry", an electronics manufacturer, which is gearing up for an offering worth nearly $3 billion, alongside "Zhongji Innolight", a manufacturer of optical transceivers, and the AI chip unit "Kunlunxin" owned by "Baidu".

Additionally, recently listed companies are not delaying their return to the market for additional funding. The Chinese battery company "CATL" raised $5 billion through a private placement following a similarly-sized listing in Hong Kong last year, while the AI model developer "Zhipu", which launched its shares in January, plans to raise several billion dollars starting next month, according to informed sources.

This frenzied activity has helped maintain the momentum of Hong Kong's recovery from years of stagnation in deal-making, which had overshadowed its status as a global financial hub.

Bihua Huang, Head of Equity Capital Markets in Asia-Pacific at "J.P. Morgan", said: "Last year, Hong Kong's IPO market reopened in the second quarter after a limited number of large and successful deals. Now the market has repeatedly proven its ability to absorb multi-billion dollar listings."

AI Leads Activity

AI is boosting deal-making activity across most Asia-Pacific markets, especially in South Korea, Taiwan, and China. The Korean memory chip maker "SK Hynix" has applied for a listing in the U.S. worth $29 billion, putting it on track for one of the largest stock sales in history.

These deals follow "SpaceX" carrying out the largest IPO in history this month, and represent an additional test of investors' appetite for AI companies, at a time when major U.S. tech firms like "Alphabet" are preparing to raise tens of billions of dollars to finance their investments in this field. This is happening amid traders' fears that the AI-related rally may have exceeded its limits.

Funding Boom in Taiwan and China

In Taiwan, financing outside of public offerings has seen a significant surge as tech companies seek to keep pace with rising demand. Companies raised $4.8 billion through convertible bonds this year, a record that has already surpassed the total of any previous full year, while billions more are expected to flow through global depositary receipts.

In mainland China, "ChangXin Memory Technologies" and "Yangtze Memory Technologies", which specialize in memory chips, plan to execute multi-billion dollar offerings.

India Loses Momentum

India was the only market that showed a performance below its size in Asia, as stock sales there totaled just over $14 billion this year, a 32% decrease compared to the same period last year. The war in the Middle East has dealt a blow to India's oil-dependent economy, with strong pressure on stocks as a result.

The "NSE Nifty 50" index has declined by 7.9% this year, prompting many companies to scale back or postpone their offering sizes. Among them is "PhonePe", backed by "Walmart", which postponed an IPO that could have raised up to $1.5 billion.

However, the Indian IPO market often rebounds in the second half of the year, with significant deals expected. The "Jio Platforms" of billionaire Mukesh Ambani has filed for a listing that could become the largest in India's history, while the "National Stock Exchange of India", which manages one of the busiest derivatives markets in the world, has filed its listing documents for an offering expected to be worth several billion dollars.

Sourabh Dinkar, Head of Global Capital Markets for Asia-Pacific at "Morgan Stanley", said: "The challenge in India is not related to supply." He added, "It's about demand and valuations, as the market has already seen a significant correction."

India also suffers from a lack of major AI companies capable of attracting investor interest.

Edison Zhou, Head of Equity Capital Markets at "China Merchants Bank International", stated: "We are witnessing a clear shift in existing liquidity, with funds flowing from traditional equities in the secondary market directly toward AI supply chain stocks and the primary tech IPO market."