Hong Kong Stock Market Rally Rolls Into 2026, Biren IPO Shines

The Hong Kong stock market posted a strong start to 2026 on Friday, capped by a stellar debut from Shanghai-based Biren Technology. The 2.8-percent rise in the Hang Seng Index and a 4-percent surge in its technology index set a positive tone for the resumption of trading by Chinese mainland markets on Monday after the New Year holiday break.

Shares in Biren, a developer of artificial intelligence chips, closed up 76 percent from their offer price after a HK$5.58 billion (US$716.3 million) initial public offering that was 2,300 times oversubscribed by retail investors. The city's stock market surged 28 percent last year, its best performance since 2017, and took the 2025 crown for global IPOs.

"Hong Kong's IPO market is set to continue bullish in 2026 and could raise up to HK$300 billion," John Lee Chen-kwok, vice-chairman and co-head of Asia coverage at investment bank UBS in Hong Kong, told the South China Morning Post. "Over 300 candidates have filed for listings, which is a strong pipeline."

That pipeline includes Beijing-based Zhipu AI, which aims for a January 8 debut in an IPO valued at up to HK$4.35 billion. The listing will be the first Chinese mainland AI large-language developer to go public in the city. January debuts are also pending for Shanghai-based AI company MiniMax, chipmaker Iluvatar CoreX Semiconductor and Shenzhen-based Edge Medical.

Lee forecasts the Hong Kong market will be led this year by companies in technology, consumer products, health care and new energy.

Retail investor sentiment remains strong.

"I made decent profits from tech shares and gold last year, while remaining vigilant about the concern over an AI bubble," said Sandy Fan, an individual investor in Shanghai. "I sincerely hope the markets can continue their strong performance."

The Shanghai Composite Index closed up 18 percent in 2025 at nearly an 18-year high of 3,968.84 points. The Shenzhen Component Index gained 30 percent, and the tech-heavy ChiNext Index surged 50 percent, outperforming all major Chinese mainland markets.

Across Asia, Japan's Nikkei rose 26.2 percent in 2025 and will reopen for trading on Monday. South Korea's Kospi surged 80 percent in 2025, and continued that run by closing 2.3 higher on Friday.

New York markets began 2026 trading with mixed results. The broad benchmark S&P 500 index was up 0.2 percent on Friday, while the Nasdaq Composite slipped 0.03 percent. In Europe, the Stoxx600 added 0.7 percent.

Precious metals continued their record 2025 runup. Silver in New York rose 2.4 percent, platinum was up 5.7 percent, and gold nudged 0.02 percent higher on Friday.