The Hong Kong Association of Banks, in collaboration with Deloitte China, has released a joint report titled "Hong Kong Banking Industry 2030," which proposes deepening financial linkages between Hong Kong and the mainland. A key recommendation is to extend the existing Stock Connect framework to include an "IPO Connect" mechanism, which would permit mainland investors to participate in Hong Kong initial public offerings.

This proposal follows the Hong Kong Exchanges and Clearing Limited's introduction of an optimization arrangement in 2026, known as "First-Day Connect." This arrangement applies exclusively to A+H dual-listed companies, which must voluntarily forgo the greenshoe option, or over-allotment mechanism. Previously, some mainland investors accessed Hong Kong IPO subscriptions through grey-market channels, such as opening accounts with offshore brokerages. However, as regulatory bodies intensified their crackdown on illegal cross-border securities activities in 2026, these informal avenues have been progressively tightened, fueling growing market demand for an official "IPO Connect" initiative.

The "IPO Connect" concept remains in the advocacy and research phase. In May, the CEO of HKEX, Bonnie Chan, publicly noted that introducing such a mechanism presents considerable challenges, requiring coordinated assessment by regulators from both regions of factors including market capacity and investor suitability. Additionally, the report recommends accelerating the inclusion of renminbi-denominated trading counters within the Stock Connect framework, enabling mainland investors to buy and sell Hong Kong-listed shares using the Chinese currency. Exchanges on both sides have already repeatedly signaled that integrating RMB stock trading counters into Stock Connect is a core next-step priority, with relevant technical and regulatory preparations currently advancing.