Mechanism A or Mechanism B? The Logic of Hong Kong Stock IPOs is Renewed

Wallstreetcn
2025.10.30 22:16

In the Hong Kong stock listing rules that took effect in August this year, a new "either-or" mechanism has been added to the public subscription allocation of new shares: Under Mechanism A, the maximum reallocation ratio for public subscription has been raised from 20% to 35%; Mechanism B allows the issuer to independently select a public subscription ratio of 10% to 60%, but there is no reallocation mechanism. Since the implementation of this rule, 25 new shares have adopted the new regulations for listing, among which only three new shares, TianYue Advanced, AUX, and DEEPEXI TECH, have adopted Mechanism A, while 22 companies, including BAMA TEA and Cambridge Technology, have adopted Mechanism B for listing

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