2025 Hong Kong Biotech IPO
A Tale of Two Halves

Few markets illustrate the duality of investor sentiment as vividly as Hong Kong’s biotech IPO market did in 2025. The year began with a euphoric surge — record first-day gains, triple-digit percentage jumps, and oversubscription ratios that defied belief. It ended with a dramatic reversal — back-to-back po fa (破发, falling below offer price) episodes that shattered the “B仔股” (B-share) myth and sent a chill through the entire 18A ecosystem.

This article dissects the two distinct halves of 2025 — the first-half frenzy and the year-end correction — and examines the underlying drivers, from regulatory signals to liquidity dynamics. For overseas investors, VCs, and financial institutions navigating the Hong Kong market, understanding this volatility is essential for risk assessment and timing.

1. The First Half: A Frenzy of Record Gains

In the first three quarters of 2025, the 18A market was a sensation. A total of 16 unprofitable biotech companies listed under Chapter 18A during the year, and the majority delivered spectacular first-day performances[reference:0]. The average first-day gain for the 18A cohort reached 69.4% — more than double the Hong Kong market average[reference:1].

Among the top performers, three companies stood out:

Company	Listing Date	First-Day Gain
银诺医药-B (Vigonvita)	August 15, 2025	+206.48%
中慧生物-B (Zhonghui Biotech)	August 11, 2025	+157.98%
旺山旺水-B (Wangsheng Wangshui)	November 6, 2025	+145.73%

Other notable performers included 宝济药业-B (+138.82%), 轩竹生物-B (+126.72%), and 映恩生物-B (+116.70%)[reference:2].映恩生物’s IPO in April attracted 15 cornerstone investors and became the largest 18A offering since 2022[reference:3].

But it was the retail subscription frenzy that truly captured the market’s imagination. 中慧生物‘s IPO drew over 4,000× oversubscription in the public tranche, with subscription funds exceeding HK$200 billion. 银诺医药 attracted more than HK$300 billion in subscription funds[reference:4]. 维立志博-B achieved a retail subscription ratio of 3,494×, attracting over HK$330 billion in subscription funds[reference:5].

Behind this euphoria were three converging factors: global market recovery, supportive policies from mainland China for innovative drugs, and HKEX’s pricing mechanism reforms[reference:7]. The TECH Channel, launched in May 2025, also streamlined the listing process, reducing preparation timelines and compliance costs[reference:8].

For the first 11 months of the year, 13 out of the 16 18A IPOs traded above their offer price on debut — a win rate of 85%, with an average first-day gain exceeding 90%.

2. The Turning Point: December’s Double Blow

Then came December. The party ended abruptly.

On December 22, 2025, 华芢生物-B (Huaren Biotech) listed on the HKEX. Unlike its predecessors, the stock opened below its offer price and never recovered. It closed the day down 29.32%[reference:10] — the first major 18A po fa in months[reference:11].

The following day, December 23, 翰思艾泰-B (Hansight AI) made its debut. Despite having attracted an astonishing 3,074× oversubscription in the public tranche and pricing at the top of its range (HK$32 per share), the stock plunged 46.25% on its first day of trading[reference:12][reference:13]. Investors who received an allocation lost approximately HK$1,480 per board lot.

The impact on investor sentiment was immediate and severe. The term “大面” (big loss) began circulating among retail investors, and the previously unshakeable confidence in 18A new issues evaporated overnight[reference:15].

By year-end, 4 out of the 16 18A companies that listed in 2025 had broken through on their first trading day. The other two were 派格生物医药-B (−25.90%) and 拨康视雲-B (−38.61%)[reference:17].

3. Why the Reversal? Three Key Drivers

The year-end correction was not a random event. It was the result of three interrelated pressures that built up over the course of the year and finally reached a tipping point in December.

3.1 Regulatory Tightening

In the weeks leading up to the December sell-off, regulatory signals had turned cautious. The Hong Kong SFC and HKEX jointly issued a letter to IPO sponsors, warning about the quality of listing applications and expressing concern that some practitioners were not sufficiently familiar with regulatory requirements[reference:18].

This was a clear signal that the regulatory gatekeepers were raising their standards. For companies that had rushed to list during the上半年 frenzy, the message was unmistakable: the era of “anything goes” was over[reference:19].

3.2 IPO Density and Liquidity Diversion

The sheer volume of new listings in 2025 created a supply-demand imbalance. According to Deloitte, Hong Kong was on track to complete 114 IPOs in 2025, raising approximately HK$286.3 billion — a 63% increase in deal volume and more than triple the proceeds from the previous year[reference:20].

This IPO density — particularly the concentration of listings in the fourth quarter — split market liquidity. With so many new issues competing for investor attention and capital, the “scarcity premium” that had buoyed earlier 18A IPOs evaporated[reference:21].

As one investment banker told 21st Century Business Herald: “Since September, the innovative drug sector has corrected across the board, with some stocks halving in value. The secondary market adjustment is gradually transmitting to the primary market”[reference:22].

3.3 The Shift from “Story” to “Substance”

Perhaps the most fundamental driver was a shift in investor due diligence standards. Earlier in the year, investors were willing to bet on promising pipelines and compelling narratives. By December, the focus had shifted to commercialisation capability, cash runway, and management quality[reference:23].

Companies with late-stage assets or already-approved products — such as 宝济药业, which had a commercialised drug — continued to attract strong demand. Those with early-stage pipelines and no clear path to revenue — like 华芢生物 and 翰思艾泰 — were punished mercilessly[reference:24].

4. The Aftermath: What It Means for the Pipeline

The year-end correction has profound implications for the 80+ companies still in the 18A pipeline[reference:25].

According to HKEX disclosure, as of late December 2025, more than 80 companies had submitted listing applications under Chapter 18A[reference:26]. Among them, 9 companies filed in November alone, and in late September, 7 companies filed in a single week[reference:27]. Many of these companies had accelerated their IPO plans during the first-half market boom, hoping to capitalise on the favourable window.

That window may now be closing.

Industry analysts have warned that if three more 18A IPOs experience similar “大面” outcomes, up to 80% of the companies currently in the pipeline could face issuance difficulties[reference:28][reference:29]. The logic is simple: negative feedback loops are powerful. Once the “can’t-lose” narrative is broken, retail investors retreat, cornerstone investors become more selective, and the entire IPO ecosystem — from pricing to allocation — comes under pressure[reference:30].

However, it is also worth noting that 2024 saw a 35.71% IPO break-through rate across the broader Hong Kong market[reference:31]. In other words, po fa is not unusual — it is a normal feature of market cycles[reference:32]. What made the December 2025 episode remarkable was the suddenness of the shift — from 85% win rate to back-to-back losses in a matter of days.

5. Implications for Due Diligence and Risk Assessment

For overseas investors, financial institutions, and professional services firms, the 2025 biotech IPO cycle offers several practical takeaways.

First, the 18A market is highly sentiment-driven. Valuations can swing wildly based on market conditions, and companies that look attractive in a bull market may become untenable in a correction. Stress-testing valuations against different market scenarios is essential.

Second, commercialisation capability is becoming the key differentiator. Investors are no longer satisfied with “pipeline stories” — they want evidence of regulatory progress, market access, and revenue generation. Companies that cannot demonstrate a clear path to commercialisation are increasingly risky bets[reference:33].

Third, regulatory risk is real and growing. The HKEX and SFC are raising the bar for listing applications, and companies that cut corners or lack robust governance may face delays or rejection[reference:34].

Fourth, information asymmetry remains a significant challenge for overseas investors. Access to verified, official company information — including registration status, credit history, legal risk profile, and corporate governance records — is essential for making informed decisions. This is where specialised China company information services play a critical role.

Whether you are evaluating a potential investment, conducting a compliance review, or advising a client on a cross-border transaction, having reliable data about a company’s legal status, financial health, and governance practices is non-negotiable. Services that provide official enterprise credit reports and professional due diligence reports can help bridge the information gap.

6. Conclusion

2025 was a year of extremes for Hong Kong’s biotech IPO market. The first half delivered record-breaking gains, unprecedented oversubscription, and a sense of invincibility. The second half — and particularly the final days of December — delivered a sobering reminder that markets are cyclical, sentiment can shift in an instant, and not all 18A companies are created equal.

The year-end correction was not a sign of systemic failure. It was a market adjustment — a re-pricing of risk and a re-evaluation of what investors should pay for biotech assets. Companies with strong fundamentals, clear commercial pathways, and robust governance will continue to find a receptive market. Those that lack these attributes will face increasingly difficult conditions.

For overseas investors and professionals, the lesson is clear: opportunities exist, but they must be earned through rigorous due diligence. The Hong Kong biotech market is maturing — and with maturity comes the need for better information, deeper analysis, and more disciplined risk management.