As 2026 unfolds, the fervor for medical company Initial Public Offerings (IPOs) on the Hong Kong stock market continues unabated, with a queue of over 100 medical firms eagerly awaiting their turn. However, a discernible shift is underway, as IPO policies appear to be tightening, with regulators imposing more stringent criteria on the caliber of listing applications. Amidst this evolving landscape, the risk of new stocks plummeting below their issue prices has escalated, with some companies witnessing substantial drops on their very first day of trading. Industry experts are voicing concerns that a 30% decline on the debut day could potentially become a common occurrence.

Despite these challenges, the underlying fundamentals of the medical industry have witnessed a significant upturn. The accelerated approval process for innovative drugs and the swift progress of domestic substitutes are providing robust, long-term support for the market. For companies aspiring to go public, the key lies in honing their core competitiveness, elevating the value of their product pipelines, and clearly articulating their paths to commercialization as a means to mitigate market risks.

Simultaneously, these firms can explore strategies to hedge against regulatory tightening and market fluctuations. This could involve securing Pre-IPO round financing, engaging in mergers and acquisitions, or adopting other prudent measures to ensure a seamless listing process and pave the way for sustainable growth.