In recent years, an increasing number of Chinese concept stocks have chosen to re-list in the Hong Kong capital market, a phenomenon known as "secondary listings in Hong Kong." So, what exactly is a secondary listing for Chinese concept stocks? Simply put, Chinese concept stocks refer to Chinese companies listed in overseas markets, such as the United States. A secondary listing in Hong Kong, as the name suggests, means these companies are re-listing through the Hong Kong market, usually to leverage Hong Kong as an international platform to expand their capital sources and enhance their global influence.

In this process, the pricing strategy becomes a focal point of investor attention. How exactly is the pricing for secondary listings in Hong Kong determined? Why do we see cases of "discount" or "premium" pricing? This article will provide a detailed explanation of the pricing mechanism for Chinese concept stocks' secondary listings in Hong Kong, helping you understand the market logic behind it.

The Rise of Chinese Concept Stocks' Secondary Listings in Hong Kong

In 2025 and 2026, an increasing number of Chinese concept stocks are choosing to pursue secondary listings in Hong Kong. For example, Li Auto (02015.HK) successfully re-listed in Hong Kong through a secondary listing in June 2025, while Xpeng Motors (09868.HK) also opted for a secondary listing at the end of 2025. Additionally, JD Health (6618.HK) completed its secondary listing in August 2025. With the inclusion of these well-known companies, Hong Kong's attractiveness to Chinese concept stocks has gradually increased, and many companies are eager to leverage the international platform of the Hong Kong market to expand their influence and enhance their ability to raise funds.

Secondary Listing vs. Dual Listing

There are two main types of listings for Chinese concept stocks returning to Hong Kong: secondary listing and dual listing. A secondary listing usually refers to the process where companies list in Hong Kong through mechanisms such as American Depository Receipts (ADR). A dual listing, on the other hand, means the company is considered the primary listing entity on both the Hong Kong and U.S. stock markets, typically involving the issuance of new shares on the Hong Kong market. These two types of listings have some differences in their pricing. Secondary listings generally refer to prices that are aligned with the U.S. stock price, while dual listings may be priced according to Hong Kong’s independent rules.

The Pricing Behind the Maximum Offering Price and Final Price

During the secondary listing process, many companies publish a "maximum offering price" in their prospectus. This price is essentially a price cap set by the Hong Kong regulatory authorities to protect retail investors, ensuring that their subscription costs do not exceed this limit. However, the final offering price is not necessarily the same as the "maximum offering price" and is determined through a market-driven mechanism, typically taking into account the U.S. stock market price and investor demand.

Premium and Discount: The Investor's Perspective

The pricing of secondary listings often involves scenarios of either a premium or a discount. A "premium" refers to the offering price being higher than the market price in the U.S., while a "discount" means the offering price is lower than the U.S. market price. In practice, discount pricing is a common strategy for Chinese concept stocks' secondary listings in Hong Kong. The advantage of discount pricing is that it can stimulate investor interest and generate stronger market reactions, while also avoiding the risk of overly high pricing that may lead to investor dissatisfaction. For example, Hesai Technology (02525.HK) set a final price of HKD 212.8 in September 2025, slightly lower than the "maximum offering price" of HKD 228 in its prospectus. This discount strategy also attracted a large number of investors to participate.

Future Outlook: Changes in Discount and Premium Pricing

As the Hong Kong market gradually recovers, the pricing strategies for Chinese concept stocks’ secondary listings may change. While discount pricing remains a common practice, with the restoration of investor confidence and improvements in market liquidity, we may also see more cases of premium pricing in the future. Investors participating in these secondary listings should understand the logic behind discount and premium pricing in order to make more informed investment decisions.