Hong Kong extended its 2025 market momentum into H1 2026. For valuation work, the important issue is not deal volume alone: compressed listing, transaction and reporting timetables increase the need for supportable forecasts, rights analysis, market evidence and review-ready documentation.
1. H1 2026 capital-market momentum
HKEX reported on 16 July 2026 that 87 IPO listings raised HK$210.2 billion in H1 2026, a 92.1% year-on-year increase and the second-highest H1 IPO fundraising total on record.
2. Listing reforms effective 24 July 2026
HKEX adopted reforms to enhance listing competitiveness with immediate effect. Valuation teams supporting innovative, specialist technology, biotech or overseas issuers should coordinate with sponsors, reporting accountants and legal advisers so that rights, business-model evidence, external investment and forecasts are consistent with the listing narrative.
3. Transaction disclosure and valuation evidence
HKEX GL116-23 focuses on disclosure of the basis of consideration and business valuations in notifiable transactions. A valuation used in pricing should therefore support clear explanations of methods, assumptions, comparable selection, forecasts and the board’s assessment.
4. Standards and regulatory environment
HKFRS 13 and HKAS 36 remain central to fair value and impairment work. The current International Valuation Standards apply to valuations performed on or after 31 January 2025. Fund valuation also requires appropriate methods, consistent application and controls over conflicts.
5. Practical implications
- Define scope before transaction or audit deadlines become fixed.
- Management should explain forecast drivers and downside cases.
- Map preference, convertible, earn-out and option rights.
- Retain sources for market data, comparable decisions and unobservable inputs.
- Allow time for auditor, sponsor, board and regulatory review.
Official sources
- HKEX — Hong Kong Markets H1 2026 Update
- HKEX — listing competitiveness reforms, 24 July 2026
- HKEX GL116-23
- HKFRS 13 Fair Value Measurement
- IVSC — current International Valuation Standards