HONG KONG — As of December 20, 2025, the Hong Kong Stock Exchange is heading into 2026 with a familiar mix of ambition and operational fine print: boost market liquidity, lower barriers for retail investors, and keep the IPO machine moving—without letting standards slip.
Over the past week, Hong Kong Exchanges and Clearing (HKEX)—the exchange operator—has launched a major consultation to standardise “board lot” trading units, published final conclusions on tightened ongoing public float rules that start in January 2026, and continued to host headline-grabbing listings as the city’s IPO rebound gains credibility. [1]
Below is what matters most right now for investors, issuers, and anyone watching Hong Kong’s role as the offshore fund-raising hub for China—and increasingly, for “China-adjacent” global capital.
HKEX pushes board lot reform to make Hong Kong stocks easier to buy
One of the most practical frictions in Hong Kong equities—especially for smaller investors—is the board lot. Unlike “one share is one trade” markets, many Hong Kong-listed shares trade in set units that can make the minimum ticket size surprisingly expensive.
On December 18, 2025, HKEX published a consultation proposing a simplified board lot framework that would cut the number of board lot unit sizes from 40+ down to eight standardised options: 1, 50, 100, 500, 1,000, 2,000, 5,000, and 10,000 shares. [2]
HKEX is also proposing to halve the minimum board lot value guidance from HK$2,000 to HK$1,000, and introduce a new board lot value ceiling of HK$50,000 (for issuers choosing lots larger than 100 shares). The consultation is open for 12 weeks, closing March 12, 2026. [3]
Why this matters: in plain English, this is a liquidity and accessibility play. High minimum order sizes can keep smaller investors out, reduce the number of “natural” buyers and sellers, and amplify odd-lot (non-standard unit) distortions. HKEX’s proposal explicitly frames the move as a step toward making trading “simpler and more accessible,” and even describes it as the start of a longer journey toward a single unified board lot. [4]
A phased rollout—and a link to paperless shares
HKEX says the new framework would be rolled out in phases. New issuers would list using standardised board lots first, while existing issuers would transition later—aligned with the move to Hong Kong’s Uncertificated Securities Market (USM) initiative (a shift from paper share certificates to electronic records). [5]
HKEX is also signalling that board lot reform won’t be the only “plumbing” change: it is considering enhancements to odd-lot trading mechanisms to improve efficiency under a standardised system. [6]
“Board lot” is suddenly mainstream news
Even on a Saturday (December 20), the board lot proposal is still doing the rounds in regional business media—an indicator that the topic has broken out of the market-structure niche and into mainstream investing conversation. [7]
New public float rules start Jan. 1, 2026—and they’re a big deal for listed companies
While the board lot consultation is about day-to-day trading convenience, HKEX’s other major move this week is about market integrity and tradability: ensuring listed companies maintain a healthy portion of shares in public hands.
On December 17, 2025, the Stock Exchange of Hong Kong (a wholly-owned HKEX subsidiary) published consultation conclusions on ongoing public float requirements, with the new rules effective January 1, 2026. [8]
Key elements include:
- An alternative ongoing public float threshold: issuers may choose to meet an alternative standard—at least 10% of issued shares and public float market value over HK$1 billion—to provide more flexibility for capital management (including buybacks). [9]
- A bespoke approach for A+H issuers (companies listed both in mainland China A-shares and Hong Kong H-shares): public float of H shares must meet a 5% threshold or HK$1 billion market value to maintain a “critical mass” of tradeable H shares. [10]
- New reporting and disclosure obligations for public float, and extra requirements for issuers with shortfalls. [11]
- A shift away from automatic trading suspensions: issuers with significant shortfalls may receive a stock name marker “-PF” instead, but risk delisting if they fail to restore public float within 18 months (or 12 months for GEM). [12]
There’s also a concrete compliance calendar embedded in the documentation: monthly disclosure begins with monthly returns for the month ending January 31, 2026, while annual disclosure applies to annual reports for financial years beginning on or after January 1, 2026. [13]
In short: HKEX is trying to make Hong Kong listings more buyback-friendly and capital-management-friendly without letting companies quietly become illiquid “closed clubs” with too few shares actually trading.
The IPO comeback keeps rolling—crypto, chips, and a deep pipeline
Hong Kong’s IPO narrative in late 2025 has been “the comeback story”: after a few subdued years, activity and fundraising have surged again—helped by market reforms, improved liquidity, and a pipeline of mainland-linked issuers looking offshore.
HKEX’s own monthly data shows that in the first 11 months of 2025, Hong Kong had 93 newly listed companies, and IPO funds raised totalled HK$259.4 billion, sharply higher year-on-year. Market capitalisation at end-November was HK$48.0 trillion, and average daily turnover for the first 11 months averaged HK$255.8 billion. [14]
HashKey’s listing: a “new economy” signal (with real demand behind it)
One of the most-watched deals this week was HashKey, which Reuters described as Hong Kong’s first crypto-related IPO. HashKey raised roughly HK$1.61 billion (about US$206 million), with the retail tranche reportedly oversubscribed by nearly 394 times; the stock debuted on December 17, briefly trading above the offer price before dipping around it later in the session. [15]
For HKEX, this matters for more than headlines. It’s a stress test of whether Hong Kong can (a) host digital-asset-adjacent listings under a licensing regime and (b) attract genuine demand even when crypto markets are volatile. [16]
Biren’s expected Hong Kong IPO: semiconductors and geopolitics in one package
Another pipeline datapoint: Reuters reported that Biren Technology, a Chinese AI chip firm, is expected to launch a Hong Kong IPO “in the coming weeks,” potentially raising around US$300 million. [17]
A chip IPO is never just a chip IPO in 2025. The sector sits at the intersection of capital markets, industrial policy, and export controls—exactly the kind of complexity that often pushes issuers toward Hong Kong’s deep pool of China-capital expertise and international investor access.
Regulators to bankers: stop sending sloppy paperwork
Boom times come with a predictable side effect: overloaded pipelines and corner-cutting. Earlier in December, Reuters reported that Hong Kong’s securities regulator and the exchange operator urged investment banks to keep IPO applications up to standard amid the surge in listings. [18]
The Financial Times added detail on the nature of those concerns—suggesting regulators flagged overly formulaic or copy-pasted disclosures and other quality issues—underscoring that authorities are trying to scale the IPO engine without letting standards degrade. [19]
2026 forecasts: can Hong Kong sustain HK$300 billion-plus IPO fundraising?
The forecast consensus from major professional-services firms is notably bullish—though with a caveat that macro conditions and geopolitical noise can still change the temperature fast.
Deloitte: ~160 listings, at least HK$300 billion in 2026
In its 2025 review and 2026 outlook (published this week), Deloitte forecasts Hong Kong could see about 160 new listings raising at least HK$300 billion in 2026, supported by a pipeline of more than 300 listing applications. [20]
Deloitte also points to potential 2026 drivers including: US monetary policy shifts, support for “hard tech” and “new productivity” sectors, capital-market reforms, A+H activity, biotech/AI candidates, and US-listed China concept stocks potentially seeking alternatives. [21]
EY: 2025 already looked like a breakout year
EY’s late-2025 report similarly frames Hong Kong’s IPO market as having staged a strong rebound, saying total proceeds on HKEX reached HK$280.0 billion in 2025 (up sharply year-on-year) and that HKEX ranked first globally by funds raised. EY also highlighted a very active pipeline of IPO applicants as of late November. [22]
Notably for 2026 sentiment, EY points to new IPO pricing and allocation rules implemented August 4, 2025, saying IPO debut performance improved after the rule changes. That’s the kind of “market microstructure” improvement that can feed a virtuous cycle: better debuts attract more issuers, which attract more investor attention, which attracts more liquidity. [23]
KPMG: Hong Kong’s “threefold increase” helped drive the global IPO recovery
KPMG’s December 2025 report ranks Hong Kong first globally by IPO proceeds in 2025 and argues Hong Kong’s sharp year-on-year increase in funds raised was a major contributor to the broader global IPO market’s recovery. KPMG expects the upward trend to continue into 2026, particularly with momentum building in AI-related listings. [24]
PwC: global IPO markets are open—but still selective
PwC’s Global IPO Watch (December 2025) also describes 2025 as a strong year for IPOs globally and notes confidence and an active pipeline going into 2026—while still emphasising selectivity. [25]
Put together, the house view is: Hong Kong’s IPO market is back, and 2026 could be another big year—but the market will reward scale, credibility, and clean execution.
Connectivity is still the superpower: Stock Connect and renminbi ambitions
Hong Kong’s edge isn’t just that it’s a listing venue. It’s the interface layer between mainland Chinese capital and global capital—especially through Connect programmes.
In a December 11 speech, Hong Kong’s financial services leadership said that in the first three quarters of 2025, Northbound Stock Connect averaged over RMB200 billion daily, while Southbound averaged over HK$120 billion, with Southbound inflows reaching HK$1.17 trillion—and Southbound trading accounting for nearly a quarter of Hong Kong’s market turnover. [26]
That matters for HKEX because turnover is not just a “market brag”; it’s a core driver of the exchange ecosystem’s vitality—spreads, participation, product launches, and the willingness of issuers to list when they believe liquidity will be there.
And this is still evolving. Reuters reported in November that China signalled support for adding a renminbi counter within Stock Connect, enabling mainland investors to trade Hong Kong-listed shares in yuan—an incremental but symbolically powerful extension of connectivity. [27]
HKEX is also building new benchmarks to pull liquidity into themes investors actually trade
Beyond rules and listings, HKEX has been expanding its “market ecosystem” strategy—creating products and indices that can spawn ETFs, derivatives, and cross-border distribution.
A notable example: on December 9, 2025, HKEX launched the HKEX Tech 100 Index, described as its first Hong Kong equity index, tracking 100 of the largest Hong Kong-listed companies across six tech-focused themes (including AI, biotech, EVs, internet, and robotics). HKEX also said all constituents are eligible for Stock Connect Southbound trading and disclosed a licensing agreement aimed at launching a mainland-listed ETF linked to the index (subject to approvals). [28]
This matters because the modern exchange business isn’t just a “place where shares trade.” It’s a product factory: indices → ETFs → futures/options → more liquidity → more issuers → more liquidity. HKEX is clearly trying to widen that flywheel.
What to watch next for the Hong Kong Stock Exchange in 2026
As of December 20, the next milestones are less about hype and more about deadlines and implementation:
- Jan. 1, 2026: new ongoing public float requirements take effect. [29]
- March 12, 2026: board lot framework consultation closes (and the market will watch what HKEX adopts and how fast it moves). [30]
- 2026 pipeline execution: Deloitte’s 160-listing forecast and the broader “HK$300 billion-plus” fundraising expectations only hold if market conditions stay supportive and IPO quality remains high. [31]
The bottom line
Hong Kong Stock Exchange’s end-2025 story isn’t a single headline—it’s a coordinated push on multiple fronts:
- Lower the retail friction (board lots). [32]
- Strengthen continuous tradability and transparency (public float rules). [33]
- Keep the IPO recovery on track while demanding higher application quality. [34]
- Leverage connectivity and build products investors can scale. [35]
If HKEX executes well, 2026 could be remembered less as “another good IPO year” and more as the year Hong Kong quietly fixed some of its most stubborn market-structure quirks—while doubling down on the city’s core role as Asia’s capital connector. [36]
References
1. www.hkex.com.hk, 2. www.hkex.com.hk, 3. www.hkex.com.hk, 4. www.hkex.com.hk, 5. www.hkex.com.hk, 6. www.hkex.com.hk, 7. www.theedgemarkets.com, 8. www.hkex.com.hk, 9. www.hkex.com.hk, 10. www.hkex.com.hk, 11. www.hkex.com.hk, 12. www.hkex.com.hk, 13. www.hkex.com.hk, 14. www.hkex.com.hk, 15. www.reuters.com, 16. www.reuters.com, 17. www.reuters.com, 18. www.reuters.com, 19. www.ft.com, 20. www.deloitte.com, 21. www.deloitte.com, 22. www.ey.com, 23. www.ey.com, 24. assets.kpmg.com, 25. www.pwc.co.uk, 26. www.info.gov.hk, 27. www.reuters.com, 28. www.hkex.com.hk, 29. www.hkex.com.hk, 30. www.hkex.com.hk, 31. www.deloitte.com, 32. www.hkex.com.hk, 33. www.hkex.com.hk, 34. www.reuters.com, 35. www.info.gov.hk, 36. www.deloitte.com
