The success of placements and share offerings in the Hong Kong market is closely tied to favorable secondary market conditions. In the first half of 2026, the Hang Seng Index experienced persistent volatility and weakness, which dampened the appetite for additional capital raising among traditional large-cap blue-chip companies. Consequently, the overall scale of funds raised through placements declined notably. Comparing recent data, the total placement volume in the first half of 2025 was HKD 143.1 billion, which saw a slight dip to HKD 130.3 billion in the second half. The first half of 2026 recorded a placement fundraising total of only HKD 92.5 billion, representing a significant contraction compared to the latter half of 2025, indicating a cooling of financing activity for two consecutive periods.
However, the market was not uniformly subdued. Buoyed by the strong post-listing performance of new shares in 2025-2026, the benefits of the A-to-H listing framework, and the completion of landmark large-scale placements such as that of Contemporary Amperex Technology Co., Limited (CATL), the placement market exhibited clear divergence. Newly listed hard-tech enterprises and mature A+H dual-listed leaders emerged as the core drivers of additional fundraising.
Market Weakness Curbs Blue-Chip Fundraising; CATL's HKD 39.2 Billion Placement Anchors the Market
The contrast in market sentiment between 2025 and 2026 is stark when examining large-scale fundraising projects. In 2025, Hong Kong's additional fundraising was underpinned by major consumer and technology blue-chips, with BYD Company Limited and Xiaomi Corporation completing two mega placements of HKD 43.5 billion and HKD 42.6 billion, respectively. Their combined fundraising of HKD 86.1 billion nearly matched the entire market's placement total of HKD 92.5 billion for the first half of 2026.
Even amid a broader market contraction, a benchmark large-scale project emerged in the first half of the year. In April 2026, Contemporary Amperex Technology Co., Limited (CATL) completed a HKD 39.2 billion placement, the single largest transaction in the market for the period, executed at a minimal discount of just 7%, reflecting exceptionally high institutional confidence. Other placements during the half did not exceed HKD 7 billion in scale.
Sectoral fundraising data shows that the industrial sector raised a total of HKD 45.6 billion through placements in the first half, accounting for 49% of the entire market's total. This figure was almost entirely attributable to the single CATL transaction; excluding this deal, the industrial sector's fundraising volume would have contracted substantially. Among other sectors, materials and information technology ranked second and third, raising HKD 13.8 billion and HKD 12.1 billion respectively. Healthcare and financial sectors saw relatively limited fundraising volumes, while other traditional industries experienced even weaker additional financing activity.
New Share Performance Diverges from Broader Market; 2025 Listings Seize Windows for Multiple Placements
Despite the overall subdued performance of the Hang Seng Index, some companies that listed in Hong Kong in 2025 saw their share prices rise significantly post-listing, opening windows for additional fundraising. A large number of these companies initiated placements in the first half of 2026, with some completing multiple rounds of financing in a short timeframe.
According to statistics, a total of 12 companies that listed in 2025 completed placements in the first half of 2026. These include Contemporary Amperex Technology Co., Limited (CATL) (HKD 39.2 billion), Cambridge Technology (HKD 2 billion), and Nanshan Aluminium International (HKD 2 billion), which completed sizable single placements. Companies like Unisound and Yaojie Ankang-B even completed three rounds of placements within a mere six months, frequently topping up their R&D cash flow. Unisound's three rounds raised a combined HKD 900 million, while Yaojie Ankang's raised HKD 700 million, fully demonstrating the efficiency and flexibility advantages of Hong Kong's placement mechanism.
Typically, when a newly listed company's share price has upward potential, the firm will seize the opportunity to launch a secondary offering, which can effectively mitigate the pressure from equity dilution. Of course, performance among new listings is clearly divergent; not all recent listings have sustained valuation support, and only those with relatively stable interim performance tend to opt for placements.
Beyond completed projects, specialized tech companies that listed early in 2026, such as Zhipu, MiniMax, and Biren Technology, completed large-scale placement financings of HKD 31.4 billion and HKD 7.1 billion respectively in early July. These became landmark projects bridging the first half and initiating the second half's additional fundraising activity. The sector of recent listings has become a stable source of incremental demand in the placement market, forming a sharp contrast with the contraction in traditional blue-chip financing.
A-to-H Companies Flock to Placements; Clear Contrast in Cross-Border Financing Regimes
The approval process for A-share private placements is lengthy and involves high procedural uncertainty. In recent years, several A-share companies have chosen to list in Hong Kong and leverage the general mandate rules under Hong Kong's framework to flexibly time their placements. Data shows that in the first half of 2026, a total of seven A+H dual-listed entities completed placements in Hong Kong, raising a combined HKD 50 billion.
A review of these seven companies' past A-share fundraising records clearly reveals the regulatory differences: several had previously planned large A-share private placements but faced issues such as low financing frequency or termination of plans. For instance, GF Securities's planned RMB 15 billion A-share financing in 2018 was terminated, and Tianqi Lithium's planned RMB 15.9 billion placement to major shareholders in 2021 was also called off. In contrast, Hong Kong placements do not require repeated shareholder meetings or lengthy regulatory queues; they can be executed rapidly when market windows are favorable, highlighting a significant advantage in timing flexibility.
It is worth noting that the A-share market is currently advancing reforms for a "shelf" private placement system, with relevant policies in the consultation stage. Once implemented, this reform would enable "one-time registration, multiple issuances," narrowing the efficiency gap between the two markets' systems.
However, the two financing channels still have their respective pros and cons. Currently, A-shares typically maintain a valuation premium over their corresponding H-shares, meaning A-share issue prices are usually higher. This results in less equity dilution for the same fundraising target, offering higher financing efficiency. Conversely, Hong Kong placements utilize an overnight bookbuilding model, allowing for extremely fast execution that can precisely capture short-term market windows without missing opportunities due to a fixed issuance timetable. Furthermore, Hong Kong placements can directly connect with global sovereign wealth funds and overseas long-term institutional investors, helping companies broaden their international shareholder base. For A+H dual-listed leaders in hard-tech and new energy sectors with cross-border operations and ongoing substantial capital expenditure needs, the comprehensive financing value of Hong Kong placements is difficult for A-share private placements to fully replace in the short term.
(Data Source: Dealogic; Data as of: July 8, 2026)