While the city may see a more active IPO pipeline in 2025, it is likely to be a “gradual recovery” rather than a “V-shaped” one, said John Lee, vice chairman and co-head of Asia country coverage at UBS global banking Asia. So far this year, mainland investors have bought $96.4 billion worth of Hong Kong stocks, surpassing last year’s total of $42 billion and heading towards the biggest year since a $87 billion buying spree in 2020, according to data from Goldman Sachs. “There is also a return of foreign long-only [funds] to China [and] Hong Kong equities, though the pace is gradual,” said Perris Lee, head of APAC equity capital market at Ion Analytics. ‘Not a Santa rally’ Not all new listed stocks have traded well. Chinese autonomous driving firm Horizon Robotics and bottled water maker China Resources Beverage —the two largest IPO deals in the city this year — saw their shares decline by 12% and 11%, respectively, as of Wednesday from offer price levels. Investors need to see “concrete evidence of stimulus policy effectiveness”, Shanghai Chongyang’s Wang said. He expects some improvement in sentiment early into the second quarter next year when the public companies start releasing earnings. The benchmark Hang Seng Index is heading for its first annual gain after four straight years of declines, surging over 16% so far this year.