The era of indiscriminate IPO subscription is coming to an end. For wealth management products, investing in A-share and Hong Kong IPOs has evolved from a short-term market timing game into a comprehensive competition centered on cross-border operations, industry research, and portfolio management. As an early player in dual-market primary market investment, Bank of China Wealth Management has established a systematic framework that combines multi-market allocation, extensive industry support, and diversified distribution channels. Leveraging its long-standing cross-border research expertise, it has created an IPO strategy matrix covering A-shares, Hong Kong stocks, the Beijing Stock Exchange, and public REITs. By selectively participating in dual-listed tech companies based on its investment framework, the firm has actively seized allocation windows for high-tech issuers like CXMT, Creality, and SJ Semi, channeling residents' savings into core technology sectors such as semiconductors, artificial intelligence, and advanced manufacturing. Through tiered product maturities and multi-channel distribution, it provides retail investors with low-barrier access to cross-market IPO investing, allowing public wealth to share in the growth of productive forces and innovative enterprises.

The current market landscape presents a unique convergence of supply and policy tailwinds for fund managers. In the first half of 2026, IPO fundraising in Hong Kong reached HK$210.2 billion, a 92% year-on-year increase, with a wave of hardcore tech companies in AI, advanced manufacturing, biomedicine, and new consumption going public. The proportion of Hong Kong IPOs involving A-share companies issuing H-shares has surged from 16% in 2025 to 38% in the first four months of 2026, creating a synchronized supply pipeline for both markets and expanding the pool of viable tech targets for institutional selection.

On the policy front, regulatory changes have paved the way for wealth management funds. In March 2025, the China Securities Regulatory Commission amended its issuance and underwriting rules, with the Shanghai and Shenzhen exchanges updating their detailed guidelines accordingly. These amendments designate bank wealth management products as priority off-line placement recipients for IPOs, granting them preferential allocation rights with ratios no lower than those for other investor categories. This formal recognition allows wealth funds to participate in A-share IPO book building and allocation more directly and compliantly. The pathways for bank wealth management participation in IPOs are now diversified, spanning direct A-share off-line inquiry, Beijing Stock Exchange subscriptions, indirect participation via public funds or private placements, cornerstone investments in Hong Kong IPOs, and strategic placement or off-line subscription in public REITs.

However, IPO subscription is not a guaranteed profit. In the first four months of 2026, the average first-day return for Hong Kong IPOs was a striking 49.2%, but the median was just 14.8%, indicating that a few high-performing stocks skew the average upward while most new listings deliver modest results. A blind "subscribe to everything" approach carries significant risk of losses. This environment is forcing institutions to abandon crude strategies in favor of research-driven, selective participation and systematic execution.

Yet, the direct path remains challenging for individual investors. Participating in Hong Kong IPOs directly requires navigating cross-border account opening and fund transfers, understanding local placement, trading, and fee rules, and assuming risks related to currency fluctuations, liquidity constraints, and insufficient due diligence. High oversubscription multiples on popular stocks often dilute allotment chances. In contrast, wealth management products pool small, fragmented funds and rely on professional research teams to handle research, pricing, trading, settlement, and dynamic portfolio management, offering ordinary investors a lower-barrier, indirect participation route.

Where the competition now lies

To profit from A-share and Hong Kong IPO investments, institutions need to excel in three key areas: cross-border operations, industry research and target selection, and portfolio management. Bank of China Wealth Management has focused on these pillars to build a differentiated competitive edge. First is cross-border operational capability. With the Bank of China group's outlets in 64 countries and regions, and years of experience in cross-border settlement, foreign exchange trading, and global capital markets, it has robust information channels, counterparty relationships, and custody infrastructure to support the tracking, analysis, and execution of new share deals.

Second is industry research and target selection. Hong Kong's IPO supply is concentrated in hard-tech sectors like AI, semiconductors, biomedicine, high-end equipment, and new consumption. While these companies boast strong growth potential, their business models, technology trajectories, and valuation frameworks are complex, making blind participation risky. Moving away from its early "subscribe to everything" approach, Bank of China Wealth Management now assesses new share investments through four lenses: industry trends, corporate fundamentals, issuance valuation, and exit pace. A prime example of this framework in action is Creality, which listed on the Hong Kong Stock Exchange on May 29. The consumer-grade 3D printing company combines advanced manufacturing with digital content and global consumer attributes, offering verifiable shipment data and a clear business model. After a comprehensive assessment, the company was added to the participation pool with matching exit arrangements. On its trading debut, Creality opened at HK$33.88, an 80.21% premium over its HK$18.80 issue price, though it closed up 21.3%. The significant intraday pullback underscores a crucial lesson: realizing returns on IPO investments is not just about selecting the right stock, but also about executing the right exit strategy.

Third is the "fixed income plus new shares" portfolio operation capability. As one of the earliest institutions to adopt IPO subscription strategies, Bank of China Wealth Management initially launched its "specialized and innovative IPO subscription strategy" and has iterated it into the "steady-wealth fixed-income enhancement IPO strategy" product family. This strategy is anchored on fixed income, with bonds and deposits providing a safety cushion, while a measured allocation to A-share and Hong Kong IPO investments enhances returns within compliance limits. The research team concurrently manages duration, credit risk, share selection, capital allocation, exit timing, currency hedging, and net value fluctuation controls, aiming to add returns within a defined risk budget rather than chasing short-term surges in any single new listing. A dual-market approach in both A-shares and Hong Kong allows the fund to leverage differences in issuance pace, valuation systems, and market sentiment to hedge against the risk of a single market offering limited opportunities. However, cross-market allocation is not inherently low-risk—if both markets decline simultaneously and holdings are concentrated in similar sectors, the diversification benefits can weaken considerably.

From daily liquidity to 365-day holds: tailored maturities bring IPO opportunities to a broader audience

The complete IPO strategy lifecycle—from allocation and listing to exit, combined with duration management of the fixed-income base and rolling currency hedging—demands capital stability. The essence of product maturity design is aligning liability-side fund stability with the investment cycle of underlying assets. Based on this principle, Bank of China Wealth Management's IPO strategy product range spans daily-liquidity options, 7-day, 14-day, 60-day, 90-day, 180-day, 270-day, and 365-day minimum holding periods, as well as closed-end products, catering to investors with varying liquidity needs. Specifically, investors who require frequent fund access and can tolerate minor net value fluctuations can choose flexible products with daily, 7-day, or 14-day windows, trading a bit of term for strategy participation. Those with idle funds seeking moderate yield enhancement on a fixed-income base might opt for 90-day to 270-day products, which offer a stable capital window and relatively ample return elasticity. Investors with low liquidity requirements and a long-term asset allocation view can select 365-day or closed-end products, which better match the full operational cycle of the IPO strategy.

A pivotal shift: from opportunistic betting to systematic allocation

The evolution of wealth management institutions' involvement in A-share and Hong Kong IPO investing signals a transition from a temporary market opportunity to a normalized, standardized asset allocation capability. The A-share A-category placement system provides a solid regulatory foundation, while Hong Kong continues to supply a steady stream of hard-tech IPO targets, enhancing certainty on both sides of the strategy. This shift represents a reshaping of wealth management funds' role in the capital markets. By fostering a long-term ecosystem, these funds support tech innovation and capacity expansion while promoting multi-asset, multi-strategy transitions. Wealth funds are no longer just short-term market participants; they are becoming patient capital accompanying the growth of innovative enterprises, injecting stability into a "long-term money, long-term investment" market structure.

From a national strategy perspective, Bank of China Wealth Management's focus on high-quality IPO subscription guides capital toward "specialized and innovative" and hard-tech companies aligned with national industrial policy, effectively bridging financial resources with the real economy. On the inclusive finance front, these strategies dismantle the high entry barriers and professional complexity of high-growth sectors. By pooling small, scattered funds and assigning professional teams to handle research, pricing, and trading, wealth management firms open institutional-level policy benefits to the public. This allows ordinary investors to share in domestic tech innovation growth while keeping risks manageable. Within the year, Bank of China Wealth Management has launched multiple IPO strategy products on channels including Bank of China, China CITIC Bank, China Minsheng Bank, Dongguan Rural Commercial Bank, Bank of Nanjing, and Qilu Bank. For investors, setting rational expectations is key: A-share and Hong Kong IPO investment is best suited as a supplement to diversified asset allocation, not as a substitute for deposits. Returns should not rely excessively on any single strategy. In a low-interest-rate environment, prudence does not mean avoiding all volatility. It means, within a framework of understood risks, matched durations, and controlled exposure, continuously seeking diversified incremental returns. A-share and Hong Kong IPO investing is one such avenue—and its true value will ultimately be proven by systematic capability and the test of time.