(HedgeCo.Net) Hedge funds are re-entering the Hong Kong initial public offering (IPO) market in force. According to the Financial Times, hedge funds accounted for roughly 14% of IPO cornerstone investment in Hong Kong in recent listings — a level just below the highs of 2021. Financial Times
Major funds have backed listings of prominent Chinese firms such as CATL and Zijin Gold, which enjoyed strong first-day gains (Zijin, +68.5%) and substantial investor interest amid the AI and commodity resurgence. Financial Times
Funds are diversifying geographically — reducing reliance on U.S. markets and rotating to China/Hong Kong equity exposure. Financial Times
What this signals: A renewed risk appetite and global diversification by hedge funds, rather than a exclusive U.S. focus.