(March 12): If there was any doubt IPO fever has returned to Hong Kong, look no further than Laopu Gold Co’s rally of more than 1,600% since its listing less than a year ago.

Its shares surged as much as 15% in Hong Kong trading on Wednesday before closing 3% higher. Now at US$15 billion (RM66.44 billion), the Beijing-based jeweller boasts a larger market value than Chow Tai Fook Jewellery Group Ltd or Pandora A/S. That’s despite the Chinese company, which specialises in making gold jewellery inspired by Buddhist themes, generating only a fraction of the revenue and profits that Chow Tai Fook or Pandora earn.

And while the popularity of its necklaces and the recent rise in gold prices may have contributed, Laopu’s rally exemplifies how many of Hong Kong’s recently listed stocks — particularly those targeting consumers — are in vogue. Investors are increasingly betting that Chinese consumption will return after years of belt-tightening amid positive signs such as China’s recent annual political gathering, which exuded support for boosting domestic consumption.

“The policy meetings are putting consumption as a key priority, which can drive rotation and broaden out the tech-driven rally to other sectors,” said Marvin Chen, a strategist at Bloomberg Intelligence. Chinese stocks have rallied after DeepSeek’s artificial intelligence breakthrough, encouraging related firms to pursue share sales.

It’s not just Laopu. Bubble-tea giant Mixue Group’s shares have nearly doubled since the company’s listing last week and those of Mao Geping Cosmetics Co have more than tripled since their December debut.

That could bode well for companies in the consumer space looking to list. Miniso Group Holding Ltd is considering listing its Top Toy business in Hong Kong, according to people with knowledge of the matter, building on enthusiasm for Chinese toymakers like Pop Mart International Group Ltd and Bloks Group Ltd, whose shares have surged recently.

The secret sauce to these gains: the ability to dominate China’s massive market — as Mixue is doing with its larger-than-Starbucks franchise — and owning intellectual property that sets the company apart, like what the toymakers are doing, said Kerry Goh, chief investment officer at Kamet Capital Partners Pte.

“We are looking at product categories where we don’t see other national champions,” said Goh, who bought into Mao Geping’s IPO.

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