Goldman Sachs: Hong Kong Market Has Entered the AI Era
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Goldman Sachs: Hong Kong Market Has Entered the AI Era
This year, the Hong Kong stock market IPO fundraising amount is expected to surpass the 2021 historical peak. AI-related stocks swept the top spots in fundraising, trading, and price gains, and more AI enterprises will list in Hong Kong in the second half of the year.
Navigating Web3 tides with focused insightsAuthor:China Fund News
Recently, Wang Yajun, Head of Equity Capital Markets for Goldman Sachs Asia (ex-Japan), stated at a media conference that the Hong Kong market has entered the AI era. However, major stock indices do not yet reflect this, which explains the discrepancy between IPO issuances and index performance. This year, the total equity financing amount in the Hong Kong market is expected to hit a new high, but index performance has been flat so far. Wang Yajun believes that, supported by growth in end-user demand, capital expenditure by AI enterprises will continue.
Total Equity Financing in Hong Kong Market Expected to Hit New High Again
Since the beginning of this year, the equity financing market has been hot, and investment bankers are exceptionally busy. Wang Yajun said that this year is even busier than last year, with fewer trips home than last year. He optimistically estimates that the total equity financing amount and IPO financing amount in the Hong Kong market for the full year are expected to hit new highs again.
Data from Dealogic shows that since the beginning of this year, as of July 7, the total financing amount for Chinese issuers in the Hong Kong equity capital market was $67 billion, while the full-year figure for 2025 was $90.6 billion; the total IPO financing amount for Chinese issuers in Hong Kong was $30.3 billion, while the full-year figure for 2025 was $36.6 billion. Dealogic rankings show that, based on the bookrunner perspective, the total financing amount for Chinese issuers in the equity capital market (ECM: including IPOs and refinancing) handled by Goldman Sachs ranked first among Chinese and foreign securities firms (investment banks).
Discussing investors participating in IPO projects this year, Wang Yajun stated that the coverage of investors participating in Hong Kong IPOs this year is broader than last year, with more global long-only funds and higher quality. The cornerstone investor aspect showed a similar trend: broader participation, larger numbers, more represented regions, and more high-quality investors. For some hot projects in the Hong Kong market this year, without cornerstone investment, institutional investors might find it difficult to secure ideal allocations. Therefore, institutions that previously participated less in cornerstone investments have also participated in cornerstones this year.
Hong Kong Market Has Entered the AI Era
As of July 13 this year, the Hang Seng Index fell by 5.53%. During the same period, the Hang Seng Tech Index fell by 15.22%. The hot IPO issuance contrasts with the flat performance of the secondary market. Wang Yajun believes that behind this lies a mismatch between the indices and the Hong Kong stock market: major indices can no longer represent the face of the Hong Kong market. In other words, the Hong Kong market has entered the AI era, but the indices have not yet caught up.
"This year, the most active topic in Hong Kong is AI, the most actively traded stocks are AI stocks, the best performers are AI stocks, and the largest financing amounts are also for AI-related stocks. However, the composition and revision of stock index constituents take a long time. Therefore, the Hong Kong market presents a scene of ice and fire: on one hand, Hong Kong's IPO financing figures have hit a record for the same period in history, and full-year IPO financing is expected to surpass 2021; on the other hand, index performance is average," Wang Yajun said.
"AI is a high-risk industry, and fluctuations in stock price and market value are normal," Wang Yajun further stated. "If there is no tolerance for volatility, it is difficult to cultivate excellent enterprises. A market must tolerate enterprises going 'from 0 to 1' and also tolerate enterprises going 'from 1 to 0'; only then can good enterprises be cultivated."
"Currently, large model companies are contending with each other, and competition is fierce. However, ultimately the large model field will achieve a winner-takes-all scenario. For users, the switching cost from Model A to Model B is low. Considering the laws of industry development and the characteristics of users using large models, investors in large models find it difficult to bet their money on a single model company. Before the outcome is determined, investors will bet on several leading model companies simultaneously," Wang Yajun explained.
Capital Expenditure in AI Field May Continue
When asked whether there is a bubble in the AI field, Wang Yajun stated that people are using AI more and more, and the capital expenditure supporting these AI capabilities, such as computing power, chips, storage, and materials, will continue to grow. AI demand is in an upward phase, and customer demand determines the direction of capital expenditure. Therefore, the capital expenditure of the entire AI enterprise sector will continue to increase.
Wang Yajun stated that China has a very complete industrial chain, and some of these enterprises will eventually list on the Hong Kong capital market. By the second half of the year, everyone will see more AI enterprises listing in Hong Kong or on the STAR Market.
In early 2026, the Hong Kong Securities and Futures Commission issued a circular stating that there were multiple serious deficiencies in the process of preparing certain listing documents and responding to regulatory opinions, and key regulatory processes and procedures were not handled during the offering phase. The Hong Kong Securities and Futures Commission requires that the number of active projects simultaneously advanced by the same signing sponsor during the same period shall not exceed 6. Wang Yajun believes that the measures taken by the Hong Kong Securities and Futures Commission aim to improve the quality of Hong Kong IPOs and enhance the quality of the entire Hong Kong market.
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