HKEX Insight

• Cash market ADT: HK$276.7 billion, up 14% year-on-year
• Derivatives ADT: 1.83 million contracts, down 1.7% year-on-year
• ETF ADT: HK$40.2 billion, up 15% year-on-year
• Number of IPOs: 40, compared with 17 in Q1 2025
• Total funds raised via IPOs: HK$110.4 billion, compared with HK$18.7 billion in Q1 2025

Average daily turnover (ADT) in Hong Kong’s cash equities market reached HK$276.7 billion in Q1 2026, representing a year-on-year increase of 14%. Q1 closed out strongly, with ADT for March reaching HK$304.0 billion.

Hong Kong maintained its position as the world’s top IPO venue by funds raised in Q1 2026.

Forty new listings raised HK$110.4 billion – the second-highest Q1 fundraising volume recorded by HKEX – with notable individual raises by Muyuan Foods, Eastroc and Montage.

TMT was the dominant sector in the Hong Kong IPO market in Q1 2026, with notable activity by companies from across the AI value chain.

Hong Kong saw eight of the 10 largest TMT IPOs globally in the quarter, and total fundraising by companies in the sector accounted for 55% of total fundraising during the quarter. Looking ahead, there is a healthy pipeline of listing candidates, including eight international companies.

• ETP ADT: HK$45.1 billion, up 14% year-on-year
• ETF ADT: HK$40.2 billion, up 15% year-on-year
• Southbound ETF ADT: HK$7.1 billion, up 60% year-on-year
• Northbound ETF ADT: RMB4.8 billion, up 50% year-on-year
• L&I ADT: HK$4.9 billion, up 11% year-on-year

Hong Kong’s ETP market recorded higher average daily turnover in Q1 2026, supported by Southbound activity and strong traction for new products launched in the past two years.

Covered call ETFs, launched in February 2024, reached HK$681 million in ADT – approximately 27 times the level recorded a year earlier – while single-stock Leveraged and Inverse (L&I) products, introduced in March 2025, saw ADT exceed HK$2.3 billion, a five-fold increase.

Derivatives trading remained active in Q1 2026, averaging 1.83 million contracts a day, exceeding FY 2025 ADV of 1.66 million. Demand for hedging amid geopolitical uncertainty and heightened volatility drove ADV to 2 million contracts in March.

Equity index futures averaged 690,722 contracts per day, a marginal 0.1% decline year-on-year, while equity index options saw a notable uptick, rising 21% to 158,009 contracts daily – Hang Seng TECH Index Futures Options saw record high daily volume on 4 February 2026, according to HKEX data.

Hang Seng Biotech Index Futures hit a record high of 1,239 contracts on 27 March 2026, according to HKEX data.

These contracts – launched in November 2025 – are gradually gaining traction as market participants look for ways to manage exposure to Hong Kong’s biotech ecosystem.