Global hedge funds, including Millennium, Qube Research & Technologies, and Oaktree, are returning to Hong Kong listings at the strongest pace since 2021, as investors seek exposure to Chinese equities following an extended slowdown, according to a report by the Financial Times.
The report cites data from Dealogic as showing that the trio are among the hedge fund managers acting as cornerstone investors in recent IPOs, helping push the share of listings with hedge fund participation to 14%, nearly matching pre-pandemic levels. Alternative asset managers, including Boyu Capital, are also re-engaging with the market.
High-profile IPOs include Contemporary Amperex Technology (CATL), the world’s largest EV battery maker, Zijin Gold, and tech companies such as Apple supplier Lens Technology. CATL’s secondary listing raised over $5bn and closed 16% higher, while Zijin Gold surged 68.5% on debut.
Hedge funds are increasingly drawn by strong first-day returns, the AI technology boom, and renewed interest in commodities and China exposure. Oaktree’s Frank Carroll highlighted the shift as part of a broader move to rebalance portfolios away from US markets.
Recent data from Goldman Sachs suggests hedge fund allocations to China, including Hong Kong, have risen to 6.5% of total exposure, underlining a renewed appetite for the region among smart money investors.
