Wang Yajun also clearly pointed out that international long-term investors have significantly returned to China's Capital Markets, which not only reflects their confidence in China's Assets but also provides solid fundamental support for the market recovery.

The Overseas IPO market in China has begun to recover.

"If by the end of 2024 we feel the presence of the wind, then this year we truly feel the wind has come," Wang Yajun said when discussing this year's Overseas Stocks Issuance Market in China.

Regarding the basis for the recovery of the Overseas IPO market in China, Wang Yajun stated that it is mainly based on the significant increase in financing amounts, the successful issuance of large projects, and the return of international long-term investors.

First, regarding the financing amount in the Overseas Stocks Issuance Market in China, in 2024, the financing amount for the Overseas Issuance Market reached 44.8 billion dollars, more than double compared to 19.5 billion dollars in 2023. The exponential growth indicates that the turning point for market recovery has arrived. "Although 44 billion dollars is still significantly lower compared to the historical average of 75 billion dollars, the emergence of a turning point is relatively certain based on the trend," Wang Yajun said.

Entering 2025, the market is further accelerating its recovery. As of March 13, the financing amount in the Hong Kong market has reached 13 billion dollars. In just the past 10 weeks, compared to the same period last year, the financing amount has grown 23 times. Wang Yajun pointed out that despite the overall poor performance of the market at the beginning of 2024, the completion of a financing scale of 13 billion dollars in 10 weeks is quite remarkable. If this pace continues, the financing amount in the Hong Kong market for the entire year of 2025 will reach approximately 65 billion dollars, bringing it closer to the historical average of 75 billion dollars.

Wang Yajun also noted that from a seasonal perspective, the first quarter, especially the first two months, is usually not a peak financing period. Active financing periods generally concentrate from March to June and from September to November each year. However, the market performance at the beginning of 2025 has broken the norm. In the first two months, the Overseas market has achieved a financing amount of 13 billion dollars, demonstrating that the market's activity level far exceeds historical levels for the same period. This phenomenon further confirms the recovery trend of the market.

Secondly, since the beginning of this year, many large IPO projects have been successfully issued in the Hong Kong stock market, confirming that the market has begun to recover. According to publicly available market data, the three largest IPO projects in the Hong Kong market this year are,$MIXUE GROUP (02097.HK)$(raising 0.51 billion USD),$GUMING (01364.HK)$(raising 0.26 billion USD) and$BLOKS (00325.HK)$(raising 0.25 billion USD).

"The characteristics of Hong Kong stock listings this year are worth noting. Firstly, the participation of international long-term investors has significantly increased, whereas in 2022 and 2023, international long-term investors were almost absent. Secondly, the market performance of these stocks after listing has been strong," said Wang Yajun.

As of the market close on March 14, it was noted by reporters that the overall increase in stock prices for Mixue Group after going public was about 100%, Guming's stock price rose over 60%, and Bluboo's stock price increased by more than 100%.

From $Hang Seng Index (800000.HK)$、$Hang Seng TECH Index (800700.HK)$Looking at this year's increase, the Hong Kong stock market began to recover in 2024 after three years of silence and entered a phase of accelerated recovery in 2025. This trend indicates that the recovery of the Hong Kong stock market is already quite clear, said Wang Yajun.

International long-term investors have significantly returned.

Wang Yajun also pointed out that international long-term investors have significantly returned to the Hong Kong stock market, providing a solid fundamental support for the market's recovery.

The return of international long-term investors is one of the important signs of market recovery." Wang Yajun stated that during the two years from 2022 to 2023, having a few long-term investors participate in IPO projects was rare, but starting at the end of 2024, the situation changed significantly.

According to publicly available data, taking the three major consumer goods IPO projects at the beginning of 2025 (Mixue Group, Guming, and Bruker) as examples, these projects all achieved oversubscription in the international offering.——This data indicates that the market has returned to the active level of normal years.

"These projects attracted participation from numerous top international long-term investors, whose managed assets each reach hundreds of billions of dollars." Wang Yajun pointed out, "The return of these investors not only reflects their confidence in the Chinese market but also provides a fundamental support for market recovery."

Wang Yajun further explained that unlike short-term funds such as hedge funds, long-term investors typically enter the market only after thorough research and internal decision-making. Their capital scale is large with a longer holding period, and once an investment direction is determined, they do not easily change it. "This trend has been particularly evident in the past few months, which means that after being out of the market for two or three years, international long-term investors recently exhibited explosive buying behavior."

"This buying behavior is not short-term speculation but is based on confidence in the long-term development of the Chinese capital markets." Wang Yajun stated, "The recent rise in major stock indices and strong performance in IPO subscriptions occurred against this historical backdrop. The return of international long-term investors not only injects funds into the market but also brings long-term stable confidence."

Chinese assets are ushering in a new round of investment opportunities.

Wang Yajun also mentioned that with the continuous recovery of China's capital markets, the financing amount and market activity of the Hong Kong stock market will significantly increase, and market valuations will further repair. With the repair of market valuations and the continued inflow of foreign capital, Chinese assets are welcoming a new round of investment opportunities.

"The sustainability of this market recovery is far higher than before; the increase in market activity and financing amounts will lay a solid foundation for future development." Wang Yajun concluded, "The valuation advantages and policy support of China's capital market will make it more attractive in global capital allocation."

It is worth mentioning that in March 2025, $BYD COMPANY (01211.HK)$ H Shares completed a placement of 43.5 billion Hong Kong dollars (approximately 5.6 billion US dollars), the largest flash placement in the history of the Autos industry, breaking the record set during the bull market in 2021, and further demonstrating the strength and resilience of the Hong Kong market. In January 2021, BYD completed a capital increase of 3.9 billion US dollars, and this capital increase scale is 45% larger than the last one, with the issue price surpassing the previous one by 49%.

In the current market environment, IPOs and capital increases since 2025 have not only broken historical records but also show the depth and resilience of the Hong Kong stock market," Wang Yajun pointed out. "More importantly, it represents the future trend of the market. Against the backdrop of market recovery, the issuance of super-large scale Stocks in the Hong Kong market is entirely feasible."

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Editor/rice