Hong Kong IPO Surge Sparks Principal Banker Shortage (HKEX: CHC, CIT, HUT, GFS, BOC)

Hong Kong’s IPO pipeline, already off a four-year high in 2025 and off the busiest-ever start of the year, is straining a severe shortage of qualified principal bankers. The Securities and Futures Commission and the Exchange have issued letters to 13 major banks handling over 70% of 430 active listings, citing insufficient supervision capacity and inexperience. The number of responsible officers advising on corporate finance fell 90% since 2020 to 1,185 at year-end 2025, while principals are in high demand, with pay rises up to 45% and firms scrambling to qualify staff for upcoming exams. Banks must report principal counts and deal volumes by February 12. With mid-level bankers laid off during the downturn and IPO applications expected to moderate in coming months, issuers are poaching sponsors and some deals may be dropped or delayed.