Is the era of retail investors making big profits from allocations over? The new rules from the Hong Kong Stock Exchange will significantly reduce the share of IPO subscriptions for retail investors.

Recently, the Hong Kong Stock Exchange released a consultation paper regarding new IPO rules, mentioning a significant reduction in the public offering (retail) portion:

From a retail investor's perspective, thisThis will mean that the shares for the public subscription portion will be significantly compressed. The subscription winning rate for retail investors in IPOs may greatly decrease by more than 80%.

🌰For example, in the case of the Bruker IPO, one hand might win a lot. Under the new framework, it may take 10 hands to win just 1 hand, causing the winning rate to plummet.

❓ Is a high level of retail investor participation a good thing or a bad thing for Hong Kong stock IPOs? The more allocations given to retail investors, does it become easier to causeFell below the IPO price.？

Let's take a look at the data. We conducted a Statistics analysis of the cases in which Hong Kong stock IPOs listed from 2020 to 2024 fell below their offering prices according to the Range of adjustments and found that:It is not the case that the more retail investors subscribe, the higher the probability of falling below the offering price. On the contrary, the probability of falling below the offering price when the maximum adjustment hits the 50% mark is the lowest, and the sample size is also sufficiently large. This also confirms that active retail subscriptions do help to drive up IPO prices.

Note: Stocks with special callback mechanisms are counted in the above three callback ranges according to the subscription multiples. The relevant data is sourced from external data sources such as Wind.

📢📢Important Reminder: The Hong Kong Stock Exchange is collecting public opinions,with a deadline of March 19.Investors can express their views and opinions to the Hong Kong Stock Exchange based on their own determination through the following methods:

1. Email expression:Send your thoughts via email, email address:consultationsupport@hkex.com.hk

2. Public consultation draft link:https://surveys.hkex.com.hk/jfe/form/SV_3UXWIOH2UljnNfU

(Guidelines for filling out the opinion draft:@暴走暴走：🚩Very important! Complete the IPO draft opinion reflection in just 4 steps! Together we fight against the enemy! Click to view >>）

🤝 The deadline is approaching, your voice could significantly influence the final decision on the new regulations, take action quickly!

We are also launching a vote here, please participate actively!To ensure there are no duplicate votes, voting is limited to customers who have opened accounts at Futu.

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