Futu Report: Consumer Stocks Favored in IPO Market with Institution Fund Flood in New Listing, Healthcare, Industrial, and IT Sectors Expected to be
(Hong Kong, July 24, 2025) Futu Holdings Limited (“Futu” or the “Company”) (Nasdaq: FUTU), released the "2025 H1 Hong Kong and US IPO Insight Report" (the “Report”), analyzing trends in both IPO markets based on its long dedication to the IPO business. The Hong Kong IPO market showed remarkable vigor in the first half (H1) of 2025, with Futu acting as an underwriter for 19 Hong Kong-listed companies[1], maintaining its leadership position among fintech brokers. Futu supported IPOs for star projects like Mixue Group and Bloks, while providing international placement services for companies such as Haitian and Zhou Liu Fu Jewelry.[2]
The Report indicates a clear rebound in Hong Kong's IPO market and profitability during 2025 H1. Hong Kong has reclaimed its position as the world's top proceeds exchange, driven by sustained inflows of institutional and retail capital into the IPO market. Over half (54.8%) of the IPOs achieved over 100x oversubscription, while more than 71% of new listings closed higher on their debut day. The consumer sector led the IPO trend in H1, though Healthcare, Industrials, and Information Technology are poised to drive market vitality in the second half of the year (H2). In the US market, 40 Chinese companies listed on US exchanges in 2025 H1. Nasdaq remained the preferred choice, and the first-day break-rate declined significantly YoY. Information Technology and Industrials are expected to dominate the pipeline for US listings over the next year.
Mr. Daniel Tse, Managing Director of Futu Securities, stated that, “The Hong Kong market has returned to the global capital market spotlight in 2025 H1. Significant inflows of institutional and retail funds have created a favorable financing environment for enterprises. Trends including the A+H listing wave, homecoming of the China-concept stocks, and the Technology Enterprises Channel (TECH) will attract more companies to accelerate their IPO processes. However, it's worth noting that while the TECH allows companies to disclose listing information later, it compresses market communication timelines and we suggest such companies to deploy IR strategies early in order to pave their IPO process effectively.[3]”
Consumer Sector IPO Attracts Strong Interest by Institution and Retail Investors
The Report shows exceptionally strong subscription momentum in the HK IPO market during H1, with 23 companies achieved over 100x oversubscription, while 5 exceeded 1,000x – nearly matching the number of companies the full-year of 2024. This enthusiasm was amplified by significant profitability: 30 companies closed higher on their debut, compared to 19 companies in H1 2024. Among the top 10 best first-day performers, 7 achieved over 100x oversubscription. Among companies triggering clawback due to extreme retail oversubscription, 22 (66.7%) closed flat or higher on debut. All 8 companies with sufficient public subscription but insufficient institutional placement closed higher on first-day.
Both institutional and retail investors showed keen interest in consumer IPOs: 4 of the top 5 most oversubscribed IPOs were from the consumer sector. Among 11 companies achieving over 10x institutional placement oversubscription, 7 were consumer companies. However, their first-day performance diverged significantly: out of 19 newly listed consumer companies, 7 surged over 30% on debut, while 9 broke issue prices.
Futu observed that retail investors on Futu platform are becoming a crucial source of listed companies' liquidity. Within the first week after IPO, Futu consistently ranks among the top platforms by both buy and sell volumes. Retail investors often buy heavily during dips and take profits during rallies, capturing incremental returns.
Tech and Healthcare Sectors Poised for HK IPO Boom
7 A-share listed companies debuted in Hong Kong during 2025 H1, raising over HK $77 billion and accounting for 72.2% of the IPO proceeds. With over 50 A-share companies planning HK listings, the "A+H" wave is expected to stay strong over the coming year.
Data shows that firms undergoing HKEx listing approvals are dominated by Healthcare (31%) and Information Technology (17%) sector. The TECH is set to accelerate listings for tech and biotech firms. According to wind, 22 and 12 companies plan to listings under Chapter 18A and 18C rules, respectively.
Information Tech, Industrials & Consumer to Drive US Listings
While the number of US listings by China Concept Stocks (40 companies) increased significantly YoY from H1 2024 (25 companies), total funds raised (US $880 million) and the average deal size (US $21 million) declined noticeably due to the absence of mega-listings with 67.5% (27 companies) raising under US $10 million. During the period, Futu facilitated the successful US IPO of Chagee, securing over US $500 million in international placement orders.
The China Concept Stocks break-rate of H1 2025 fell to 32.5% (13 companies) from 44% YoY. According to SEC disclosures, 47 Chinese companies filed for US IPOs (including updated prospectuses) during the period, with Info Tech, Industrials, and Consumer sectors expected to dominate upcoming listings.
Futu Leads Public Offering Subscriptions
As of Q1 2025, Futu has served over 327 companies through their IPOs[4], spanning sectors like Information Technology, Healthcare, and Consumer. Meanwhile in 2025 H1, Futu acted as an underwriter for 19 HK-listed companies[5]. Among the top 10 HK IPOs by funds raised, Futu served 6 of them. It also supported 6 out of the top 10 companies by market cap at debut and served 11 companies each valued over HK $10 billion.[6]
Futu provided international placement services for 21 companies in H1 2025, including Bloks, Haitian and Zhou Liu Fu Jewelry[7], connecting them with high-quality professional investors. In the public offering segment, Futu's market share of subscription amounts further increased: 40 companies saw over 20% of their total public subscription proceeds via Futu, with 23 exceeding 40%.
Consumer listings were particularly favored by Futu investors: the platform subscription proceeds averaged over 38% of public subscription amounts for consumer IPOs. Mixue Group, Bloks, and Auntea Jenny saw Futu capture over 50% of the market, with Mixue attracting HK $1.07 trillion in orders on Futu.
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[1] Source: wind, Futu Data
[2] Services provided by licensed company of Futu Group
[3] This content is not and should not be regarded as an offer, solicitation, invitation, or recommendation to buy or sell any investment products or the basis for investment decisions, nor should it be construed as professional advice.
[4] Services provided by licensed company of Futu Group
[5] Source: Wind, Futu Data
[6] Calculated based on the first day of listing
[7] Services provided by licensed company of Futu Group