Data on Hong Kong's equity capital markets and mergers and acquisitions for the first half of 2026, released by the Deals Intelligence team of the London Stock Exchange Group, reveals that total ECM fundraising reached $44.4 billion, equivalent to approximately HKD 346.3 billion. This represents a 17.8% year-on-year increase, marking the highest half-yearly figure since 2021. The number of ECM issuances also rose by 26.7% during the same period.
The report highlights that traditional initial public offerings and secondary listings were the primary drivers of growth in the Hong Kong market. Together, they accounted for 59% of total ECM fundraising, raising $26 billion, or approximately HKD 202.8 billion. This amount reflects a significant 54.3% increase year-on-year and also sets a new record for the highest first-half total in nearly five years. The number of these transactions surged by 86.0%, reaching an eight-year high for the period.
Performance in traditional IPOs and secondary listings was notably strong. A total of 54 traditional IPO deals were completed, raising $9.8 billion, a substantial year-on-year increase of 148.6% and the highest first-half total since 2021. Secondary listings saw 26 deals completed, raising $16.2 billion, a 55.9% year-on-year increase, setting new historical records for both fundraising amount and transaction volume.
In terms of funds raised from IPOs and secondary listings, the Hong Kong Main Board ranked second among global stock exchanges, capturing a 13.9% market share. It trailed behind Nasdaq, which held a 60.2% share, but led the New York Stock Exchange, which held 7.8%.
Mainland Chinese enterprises continued to dominate the new share market in Hong Kong. According to the data, issuers from mainland China accounted for 98.5% ($25.6 billion) of the total funds raised from IPOs and secondary listings. This fundraising amount saw a substantial 88.4% year-on-year increase, and the number of transactions nearly doubled compared to the previous year.
Regarding sector distribution, the high-technology industry led Hong Kong's ECM activity with a 36.7% market share ($16.3 billion), driven by increased issuance from semiconductor, electronics, software, and information technology companies. The industrial sector (14.7%) and the energy and power sector (13.2%) ranked second and third, respectively.
The high-technology sector also dominated new share listings, accounting for 53.1% ($13.8 billion) of the total funds raised from IPOs and secondary listings, with 31 transactions completed compared to just 5 in the same period last year.
The report also noted that while the number of follow-on offerings in Hong Kong increased by 12.3%, the total funds raised from these offerings declined by 19.1% year-on-year to $16.6 billion. The total issuance of convertible securities amounted to $1.8 billion, representing a 36.9% year-on-year decrease.
Data shows that the total value of mergers and acquisitions involving Hong Kong reached $61.5 billion in the first half, a 77.2% increase year-on-year, marking the strongest first-half performance in nearly three years.
The energy and power sector dominated transactions involving Hong Kong, accounting for 36.5% of the total deal value at $22.4 billion, a 113.3% year-on-year increase.
A notable transaction was French utility company Engie's agreement to acquire UK Power Networks from CK Hutchison Holdings for $21.3 billion. This deal stands as the largest M&A transaction in the energy and power sector involving Hong Kong since records began in 1980.
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