Hong Kong equity capital markets raised $47.5 billion in the third quarter of 2026, driven by artificial intelligence fundraising. The surge pushed annual fundraising above $92 billion, approaching the $112.5 billion record set in 2021 as bankers skipped summer holidays amid heavy share sales, placements, and block trades.
An artificial intelligence-fueled capital rush sent Hong Kong share sales to historic highs over the summer months, defying a bruising sell-off in the wider stock market. Data compiled by Bloomberg shows that initial public offerings, share placements, and block trades produced $47.5 billion between July and September (Bloomberg). That quarterly haul represents the largest fundraising figure ever recorded for the summer period (Business Today), pushing total fundraising for the year past $92 billion (Yahoo). Paul Chan reported that total fundraising in the first nine months surpassed the total for 2025, crossing HK$388 billion (US$49.4 billion) (South China Morning Post). The broader Asia-Pacific region experienced a similar surge, with third-quarter share sales exceeding $120 billion to reach their highest level for the period in six years (Investing.com).
Alibaba Follow-on and Z.AI Lead Record Quarter
Chinese technology companies dominated the activity as they competed to finance artificial intelligence expansion (Yahoo). Alibaba Group executed the quarter’s largest transaction with a $10.2 billion follow-on offering (Businesstimes). Meanwhile, Zhongji Innolight secured nearly $8 billion in Hong Kong’s largest listing in nearly seven years (Nosmokesport). Artificial intelligence model developer Z.AI raised $9.6 billion over the course of the year through its initial public offering, placements, and convertible bonds (Yahoo).
Wang of Goldman Sachs highlighted the frequency with which firms returned to equity markets (Businesstimes).
Wang noted that the pace of fundraising is not slowing down, as some companies have pursued follow-on funding rounds just months after their initial listings.
Rival model maker MiniMax and chipmakers Shanghai Iluvatar CoreX Semiconductor and Shanghai Biren Technology also tapped investors shortly after their initial public offering lock-up periods expired (Yahoo). In addition, Zhipu AI secured $4 billion through a share placement in July as part of a $5.8 billion financing week that bypassed traditional Wall Street banks (Cryptobriefing).
Rising US Bond Yields Dampen Hong Kong Market Sentiment
Despite the historic fundraising haul, broader market pressures created a more selective environment for issuers. Paul Chan pointed to global economic headwinds in his weekly blog (South China Morning Post).
“The yields of long-term US bonds have risen to a 24-year high, which has heightened investor concerns over global economic prospects and inevitably dampened recent sentiment in the Hong Kong stock market.”
Paul Chan
The MSCI Asia-Pacific Index fell as much as 7 per cent in July amid skepticism regarding returns on heavy artificial intelligence spending (Yahoo). Only two of Hong Kong’s 10 largest deals since July were trading above their offer prices (Yahoo).
Portfolio Listings and Venture Strategy at Hong Kong Investment Corporation
Clara Chan, CEO of the Hong Kong Investment Corporation, announced that more than 30 of its portfolio companies were preparing to apply for local listings (South China Morning Post). Out of more than 200 portfolio companies, 11 have already completed listings in Hong Kong (South China Morning Post).
“People are rewarding growth and are excited by the size of the markets that many AI companies are targeting and the whole value chain.”
Stanislas Chanavat, principal of private equity technology at Pictet Alternative Advisors
Clara Chan emphasized long-term development metrics over immediate financial returns (South China Morning Post).
“For us, the socioeconomic benefit in the long run is more important than the financial return.”
Clara Chan, CEO of Hong Kong Investment Corporation
The corporation’s annual report outlines plans to launch an offshore yuan-denominated venture capital fund to support regional currency integration (South China Morning Post). Meanwhile, average daily turnover on the stock market from January through September reached HK$272.9 billion, marking a 6.4 per cent year-on-year increase (South China Morning Post).
