Hong Kong’s capital markets are facing a talent crunch as an unprecedented revival in initial public offerings places intense pressure on investment banks and financial services firms to find enough qualified bankers to lead deals.

The city’s IPO market has rebounded sharply, with first-time share sales climbing to a four-year high in 2025 and the busiest start to a year on record, prompting firms to scramble for experienced underwriters and deal sponsors.

But after several years of subdued issuance following a technology sector crackdown, the pool of senior bankers with the necessary credentials has shrunk, leaving many institutions stretched thin.

Hong Kong’s stock exchange and the Securities and Futures Commission have jointly warned that thirteen major investment banks handling more than 70 per cent of the over 430 active IPO applications are struggling to meet regulatory standards because of insufficient senior staff.

Some lead bankers are overseeing as many as nineteen live deals at the same time, raising concerns about due diligence and documentation quality.

Every IPO sponsor must designate a “signing principal” with substantial experience and responsibility for regulated activities.

However, the number of responsible officers eligible for such roles has fallen sharply since 2020. Banks are now encouraging staff to take sponsor examinations, resulting in a surge in exam demand and extended testing schedules that span holidays.

Recruiters report that experienced bankers have become highly sought after, with some receiving pay increases of up to 45 per cent as firms compete for talent.

Poaching between institutions has intensified, and firms are prioritising hiring proven principals rather than waiting for mid-career staff to accrue credentials.

The scarcity of seasoned bankers comes at a time when Hong Kong is competing with global financial centres for capital-raising mandates and seeks to maintain its position as a leading venue for equity listings in Asia.

Banks that previously retrenched senior staff are now rebuilding teams, while regulators are urging improvements in staffing and application quality to ensure market integrity as deal flows remain robust.

The shortage of dealmakers could influence the pace and quality of forthcoming listings, potentially prompting some sponsors to delay or reassign transactions as they shore up experienced personnel.

The developments underline how rapid market recoveries can expose structural workforce gaps that require strategic hiring and training to sustain long-term growth.