Davis Polk partner and co-head of Asia (excluding Japan) Li He discussed the uptick in capital markets activity in Hong Kong over the past year and the outlook for 2026 with ALB China. 

“Hong Kong witnessed a significant upsurge in placements and convertible bond issuances in 2025, fueled by its deep liquidity pool and favorable dynamics in investor bases,” Li explained, adding that companies’ decisions to tap Hong Kong capital markets are increasingly strategic – primarily focused on funding research, development and growth initiatives, financing M&A deals, or strengthening balance sheets. 

“Top-tier long-only investors and sovereign wealth funds across North America, Europe, and the Middle East have notably shifted allocations into Hong Kong in 2025,” Li noted, “which demonstrates the city is transitioning beyond a ‘financing centric’ IPO venue into an ecosystem of long-term value creation and realization.”

Li went on to note that Davis Polk had a banner year in 2025. “If I’m to encapsulate our performance in one word, it would be ‘leadership.’ We continue to be at the forefront as issuer counsel among international firms,” he said. “Our team completed 18 Hong Kong IPOs in the year, 17 of which were for issuers from the most dynamic, innovative sectors, including technology, biotech, and new consumer [goods].”

Li explained that the firm’s dominance lies in bringing “first principles” into legal work – which means getting to the essence of business and legal issues, and devising the most compelling IPO structures and equity stories tailored to each client’s unique strengths.

Looking ahead to the rest of this year, Li expressed optimism about the market momentum. “In essence, capital gravitates toward the most efficient, credible markets. Hong Kong’s greatest strength lies in its agility and capacity to evolve in response to shifting dynamics – and the resulting transparent, trustworthy and efficient ecosystem,” he said. 

“Tackling Complexity,” ALB China (February 2026 issue) 

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