Hong Kong Q3 equity financing hits record high on AI boom

Hong Kong's third-quarter equity financing reached a record high for the period, driven by an AI boom that accelerated fundraising among Chinese tech companies. From July to September, Hong Kong raised $47.5 billion through IPOs, placements, and block trades, according to Bloomberg. The AI sector was a major driver, with companies like Alibaba raising $10.2 billion in a follow-on offering, and optical module maker Zhongji Innolight securing nearly $8 billion in Hong Kong's largest listing in seven years. AI firms such as Zhipu also raised $9.6 billion cumulatively this year. However, market weakness has raised concerns about returns on large AI investments, with only two of Hong Kong's ten largest equity deals since July trading above their issue prices. The broader Asia-Pacific region saw over $120 billion in equity financing in Q3, a six-year high for the period.