A+H Market Dynamics: Growing Cross-Border Listings and Dual Movement in Capital Markets

Dual Flow Between Hong Kong and A-shares: Expansion of A+H Camp Continues

On January 30, 2026, with Lanqi Technology commencing its IPO, the Hong Kong market witnessed an impressive scene with four leading A-share companies—Lanqi Technology, Guoen Technology, Dazhu CNC, and Muyuan Foods—simultaneously launching their IPOs. As A-share companies list in Hong Kong, firms such as Zhiyu, China Hongqiao, Yuejiang, and Guangda Environment are accelerating their listings on the A-share market through various pathways. This increasing frequency of dual listings reflects a trend towards deeper integration between the two capital markets.

Four Leading A-share Companies Launch IPOs in Hong Kong

The Hong Kong IPO market at the end of January 2026 was ignited by the concentrated IPO activities of four A-share companies. Lanqi Technology, the world’s largest memory interconnect chip manufacturer, attracted significant attention with its global offering that began on January 30 and is expected to conclude on February 4. The company plans to issue 65.89 million shares at a maximum price of HKD 106.89. It has garnered support from over ten well-known cornerstone investors, including UBS Asset Management, Balyasny, Alisoft China (a wholly-owned subsidiary of Alibaba), Yunfeng Capital, Taikang Life Insurance, and Huajin Communication, with total subscriptions amounting to $450 million.

Dazhu CNC, which focuses on manufacturing PCB-specific equipment, is offering 50.45 million shares from January 29 to February 3, with a maximum price of HKD 95.80. As a subsidiary of Dazhu Laser, Dazhu CNC had an 83.63% ownership held by Dazhu Laser prior to this IPO. The company has introduced several prominent institutions as cornerstone investors, including Singapore’s GIC, Schroders, and Hillhouse Capital, with total subscriptions reaching $310 million.

Muyuan Foods is also attracting attention with its offering of 274 million shares priced at no more than HKD 39, benefiting from its status as the leading pig farming enterprise globally by production capacity and output. According to Frost & Sullivan, Muyuan has held the title of the world’s largest pig farming company for four consecutive years.

Guoen Technology, which specializes in new chemical materials and health sectors, concluded its IPO on January 30 and is expected to list on February 4. Frost & Sullivan reports that it ranks second in production capacity in China’s bone gelatin industry in 2024.

The simultaneous IPOs of these four companies symbolize the ongoing trend of A-share companies listing in Hong Kong. Since the beginning of 2026, three A-share companies have successfully debuted in Hong Kong: OmniVision Technologies, Zhaoyi Innovation, and Longqi Technology. Additionally, Dongpeng Beverage has completed its IPO, with potential fundraising reaching up to HKD 10.14 billion. Other A-share companies like Lead Intelligent have passed their listing hearings, while Jucheng Semiconductor, Xianle Health, and New Zoubang submitted their applications in January. Data shows that as of January 27, over 350 companies are queued on the Hong Kong Stock Exchange, with nearly 30% being A-share companies, covering strategic emerging industries such as new energy, pharmaceuticals, and semiconductors.

Growing Trend of Hong Kong Companies Returning to A-shares

In response to the influx of A-share companies listing in Hong Kong, there is a notable rise in Hong Kong firms “returning” to the A-share market through diverse pathways. Recently, the China Securities Regulatory Commission announced that Zhiyu has officially submitted its progress report for the third phase of its A-share IPO guidance. This follows its listing on the Hong Kong Stock Exchange on January 8, 2026, where it emerged as the “first global large model stock.” The preparations for Zhiyu’s A-share listing continue to advance steadily, aiming for a capital layout in both markets.

Initially, Zhiyu planned to list on the A-share market, submitting its guidance record to the Beijing Securities Regulatory Bureau on April 3, 2025. However, it later adjusted its plan to first list in Hong Kong. Since its debut on the Hong Kong Stock Exchange, Zhiyu’s stock has surged by 94.66%. According to Frost & Sullivan, Zhiyu ranks first among independent general model developers in China and second among all general model developers, with a market share of 6.6% based on 2024 revenue.

China Hongqiao is also taking an innovative approach to return to A-shares through asset injection. On January 13, Hongchuang Holdings issued shares to acquire 100% of Hongtuo Industrial, officially listing on the Shenzhen Stock Exchange. This successful return signifies that China Hongqiao’s core aluminum assets have returned to the A-share market, providing an important listing platform for the company.

In November 2025, Hard Egg Innovation announced plans to spin off Ketong Technology for an A-share listing, which received approval from the Hong Kong Stock Exchange. Ketong Technology is the general distributor of NVIDIA in China and collaborates closely with over 80 leading chip manufacturers globally. Hard Egg believes that this spin-off will allow investors to better evaluate the value of its AIoT (Artificial Intelligence of Things) business.

Guangda Environment announced in November 2025 plans to issue up to 800 million shares for a listing on the Shenzhen Stock Exchange, and officially began listing guidance on December 25. Additionally, Yuejiang, a company specializing in intelligent robotics, announced its plan to list on the Shenzhen Stock Exchange in December 2025. Ying’en Biology, which went public in Hong Kong in April 2025, also completed its Science and Technology Innovation Board listing guidance in November last year.

Tighter Valuation Linkages

As dual flows become the norm, the “A+H” camp continues to expand, reaching 173 A+H companies by January 30, 2026. The divergence and convergence of A-H share premiums serve as a key indicator of the depth of inter-market linkage. According to the latest data from Wind, five companies currently show a price inversion between A-shares and H-shares, with the largest discount rates belonging to Ningde Times and China Merchants Bank at 20.14% and 9.48%, respectively. Additionally, 37 companies have A-shares trading at premiums exceeding 100%, with Zhejiang Shibao leading at a premium rate of 310.91%, followed by Sinopec Oilfield Services and Hongye Futures at premiums of 293.84% and 235.75%.

Market analysts note that in recent years, the interconnectivity of capital markets has shifted from “point breakthroughs” to “comprehensive penetration,” with growing diversity in companies’ cross-border listing options and tighter linkages in valuation pricing. Huatai Securities’ modeling indicates that by the end of 2025, nearly 100 of the approximately 170 A+H listed stocks will be constituents of the CSI 300 Index. The investment philosophy of mainland institutional investors towards Hong Kong stocks has also evolved, with A-H share rotation potentially becoming a source of excess returns for some active equity and quantitative funds. However, Huatai Securities has observed a rapid influx of southbound funds since the third quarter of 2024, leading to a significant decrease in the overall AH premium level and diminishing rotation opportunities, making it increasingly challenging to achieve excess returns.