Recently, the largest IPO in Hong Kong this year faced a rough start. On Thursday, July 30th, China’s leading photovoltaic module producer, Zhijie Xuchuang (HK03308), started trading on the Hong Kong Stock Exchange, opening below its IPO price of 980 Hong Kong dollars. The stock price plummeted by as much as 10% during the day, dragging down both its H-shares and A-shares in sync.
On July 30th, the Hang Seng Index opened up 0.26%, while the Hang Seng TECH Index rose by 0.43%. Zhijie Xuchuang’s debut on the Hong Kong stock market saw a 0.92% drop below its IPO price on the first day of trading.
The H-share IPO price for Zhijie Xuchuang was set at 980 Hong Kong dollars per share, raising approximately 53.4 billion Hong Kong dollars, making it the largest IPO in the Hong Kong stock market in 2026. The stock opened at 971 Hong Kong dollars, down by 0.92% from the issue price, resulting in a loss of 450 Hong Kong dollars per lot. The intra-day decline widened to 10%, but the stock managed to pare back some losses towards the closing bell. The A-shares of Zhijie Xuchuang also saw a decline after opening, sliding by as much as 15% at one point.
By the closing bell, the A-shares of Zhijie Xuchuang dropped by 9.15%, closing at 864 Chinese yuan, with a trading volume of 59.8 billion Chinese yuan. Following a significant rebound in the afternoon, the decline in Hong Kong stocks narrowed to 2.04%, closing at 960 Hong Kong dollars, with a trading volume of nearly 11.5 billion Hong Kong dollars. The H-shares were trading at a discount of less than 5% compared to the A-shares.
For this H-share issuance, Zhijie Xuchuang priced its shares at 980 Hong Kong dollars each, representing a discount of approximately 3% from the previously disclosed upper limit of 1010 Hong Kong dollars in the prospectus. With a base issuance of 54.5 million shares, the total fundraising amount is around 53.4 billion Hong Kong dollars. If the 15% overallotment option is fully exercised, the total fundraising size could reach approximately 61.4 billion Hong Kong dollars.
Concerns about a bubble in the AI industry have led to ongoing volatility in tech stocks recently. Zhijie Xuchuang’s A-shares have declined by about 33% this month, casting a shadow over its performance on the first day of trading in Hong Kong.
The Hong Kong Stock Exchange’s level of attention to Zhijie Xuchuang is extraordinary – on the first day of listing, it simultaneously launched monthly and weekly stock options for the company. In the Hong Kong stock market, introducing options on the first day of listing has traditionally been reserved for targets with large market capitalization and high levels of scrutiny, a privilege previously bestowed on only a few companies such as ICBC, AIA Insurance, Xiaomi, Alibaba, and CATL.