As market risk appetite declines, leading funds are intensively supporting Hong Kong stock IPOs, which may open a new window for layout.
Recently, public funds, which have been cautious about cornerstone investments in Hong Kong stocks, have quietly shifted their stance, continuously participating in Hong Kong stock IPOs across multiple sectors including technology, consumption, pharmaceuticals, and manufacturing. On one hand, the index is declining and risk appetite is contracting, while on the other hand, leading public funds are actively targeting new stocks, reflecting long-term capital's recognition of the valuation bottom of Hong Kong stocks, and laying the groundwork for the recovery of the market's financing function and the return of foreign capital.
Leading Public Funds Compete to Be Cornerstone Investors
The enthusiasm of public funds for participating in cornerstone investments in Hong Kong stock IPOs is reaching an unprecedented peak.
Since the valuation adjustment of Hong Kong stocks began in September 2025, the overall market operation has been weak, maintaining a volatile pattern since the beginning of 2026. In contrast to market sentiment, public funds have clustered into Hong Kong stock new cornerstone investments, becoming a distinctive feature of this year's Hong Kong stock market.
According to a Securities Times reporter's analysis, public participation in Hong Kong stock IPO cornerstones has broken industry limitations, covering both popular tracks and niche sectors, with a significantly broadened allocation range. On April 17, the listing of Qunhe Technology introduced GF Fund among its cornerstone investors; Guoen Technology, which went public in February, attracted Wells Fargo Fund; and Biran Technology and Jingfeng Medical, which listed in January, respectively attracted Southern Fund and Huaxia Fund as cornerstone investors.
It is worth mentioning that public funds have frequently appeared among cornerstone investors for some traditionally unpopular consumer stocks. In November 2025, the infant diaper company Leshushi went public in Hong Kong amid a sluggish market, where consumer stocks were largely ignored, yet it attracted four leading funds—E Fund, Southern Fund, Wells Fargo, and Huaxia—to collectively serve as cornerstones, with participation numbers far exceeding those of popular targets like AI and new energy at the same time. Even earlier, institutions like Southern, Harvest, and GF participated as cornerstones in the IPO of a small-cap coconut water company, reflecting that public funds are no longer simply chasing track popularity but are more focused on the fundamentals and valuation cost-effectiveness of the targets.
Industry insiders point out that this change contrasts sharply with three years ago. In 2023, the valuation of Hong Kong stocks continued to compress, and public funds generally remained on the sidelines, with few public funds appearing on the cornerstone list even for IPOs of large and medium-sized companies like Zhenjiu Lidu and Fourth Paradigm. Now, with public funds entering in batches, it is evident that fund companies are re-recognizing the long-term allocation value of Hong Kong stocks and are preemptively laying out quality assets in a low-valuation environment.
The IPO Boom Will Attract Foreign Capital Back
The concentrated participation of public funds in cornerstones also conveys a positive judgment from institutions on the Hong Kong stock IPO market, not viewing the new stock supply as a market suppression factor.
Data shows that the first quarter saw an explosive period for Hong Kong stock IPOs, with a total of 40 companies listed, raising a total of HKD 109.9 billion, ranking first in the global capital markets. Compared to 15 new stocks and HKD 18.2 billion raised in the same period of 2025, the number of listings increased by 167%, and the total financing amount surged by 504%.
Qu Shaojie, Deputy General Manager of the International Business Department of Great Wall Fund and fund manager, stated that he does not tend to view the concentrated issuance of IPOs as a core pressure on Hong Kong stocks, as the impact of IPOs on liquidity is relatively short-term, while the allocation value brought by quality asset supply has long-term significance
As an offshore market, the core of the Hong Kong stock market is the matching of assets and funds. In the first quarter, IPOs concentrated in the fields of hard technology, new consumption, and high-end manufacturing, gathering a group of globally competitive enterprises. The continuously rich core asset pool of Hong Kong stocks constitutes a substantial benefit for long-term funds. &#34;The real pressure in the market does not lie in the number of IPOs, but in the quality of assets. Poor-performing targets and shell resources will form a long-term drag,&#34; he said.
Lin Qingyuan, the manager of Ping An Dingyue Flexible Allocation Fund, believes that the expansion of IPOs and the lifting of restrictions will temporarily disturb liquidity, but the core of Hong Kong stock investment is high-quality companies, not index speculation. If high-quality enterprises are mistakenly sold off due to overall liquidity pressure, it is precisely a layout window for value investors. Currently, foreign capital is becoming more pragmatic towards Hong Kong stocks, focusing on company profit realization and adopting a &#34;no rabbit, no eagle&#34; strategy, remaining cautiously optimistic overall. The turning point for the full return of foreign capital is likely to require the resonance of two major signals—domestic macro consumption and credit data stabilizing, and Hong Kong-listed companies' profits reaching an upward turning point.
Hong Kong Stock Funds Focus on Certainty of Growth
In the face of structural differentiation and market volatility in Hong Kong stocks, fund managers' investment strategies in the second quarter are becoming more prudent, leaning towards stable assets and high-certainty directions.
Qu Shaojie believes that in an environment of high oil prices and weak economic recovery, market risk appetite is low, and funds are more likely to concentrate on undervalued, high-certainty sectors. In 2026, Hong Kong stocks will primarily feature a &#34;mainline track + stock selection&#34; structural market, making broad rallies difficult. The oil and gas and new energy industry chains have clear beta opportunities; technology hardware and the internet, after deep adjustments, show prominent valuation cost-effectiveness, suitable for phased layouts during dips in the second quarter. He emphasizes that in the current stage, stability takes precedence over elasticity, and controlling drawdowns while grasping certain returns is the core idea.
Lin Qingyuan believes that the differentiation of Hong Kong stocks will further deepen in 2026, with opportunities concentrated in the intersection of heavy asset value return and AI underlying infrastructure. The layout in the second quarter will avoid crowded tracks and focus on hardcore assets with low elimination rates and high safety margins. He is optimistic about the HALO strategy (heavy assets, low elimination rate). Against the backdrop of rapid iteration of AI technology, physical underlying assets such as electric utilities, energy infrastructure, and data centers are difficult to replace, as they can withstand the risks of technological obsolescence while deeply benefiting from the expansion of AI computing power and energy demand, possessing significant value re-evaluation space.
&#34;When the market is enthusiastic or confused, a solid investment foundation is even more necessary.&#34; Lin Qingyuan stated that current codes and models are iterating rapidly, but the physical bases supporting AI computing power, such as core electricity and complex data center networks, are difficult to be replaced by virtualization. These heavy assets can provide extremely high certainty and safety margins; they not only withstand the risks of technological obsolescence but will also deeply benefit from the massive demand for physical energy in the AI era, enjoying significant value re-evaluation in the current market environment

00HSI

07500

512380

159920

513600

159621

07200

03115

07300

02800

Against the backdrop of declining market risk appetite, leading public funds are actively participating in Hong Kong stock IPOs, opening a new window for layout. Despite the overall weakness in the market, public funds are flocking in, covering multiple sectors including technology, consumer, pharmaceuticals, and manufacturing. The participation of public funds signifies recognition of the valuation bottom in Hong Kong stocks and lays the foundation for the recovery of the market's financing function and the return of foreign capital. Compared to the wait-and-see attitude three years ago, public funds now re-recognize the long-term allocation value of Hong Kong stocks and are preemptively positioning quality assets

腾讯新闻 - 财经

Hang Seng Index

FI2 CSOP HSI

Yinhua MSCI China A ETF

ChinaAMC Hang Seng ETF

China Southern Hang Seng ETF

Guotai MSCI China A ESG General ETF

FL2 CSOP HSI

ISHARESHSI

FI CSOP HSI

TRACKER FUND

JENSCARE-B

GF SEC

GF SECURITIES

BIREN TECH

SUNDY SERVICE

SOFTCARE

ZJLD

PHANCY

CGWS

PING AN

Ping An

PING AN-R

Ping An Insurance

Public funds compete to become cornerstone investors in IPOs, opening a long-term layout window for Hong Kong stocks