Hong Kong IPO Boom Set to Shift Investment Banking Pay in 2026

The Hong Kong IPO market’s resurgence in 2025 has materially altered the compensation outlook for investment banking professionals heading into 2026. According to data from PwC, KPMG, and independent sources, 2025 saw over 300 IPO applications in the pipeline and record fundraising levels—HKD285.8 billion raised, a more than two-fold increase over 2024. ([pwchk.com](https://www.pwchk.com/en/press-room/press-releases/pr-050126.html?utm_source=openai)) hybrid major IPOs and “A+H” listings drove these gains. For example, by December 7, 2025, applications stood at 316, including 92 A+H listing applicants. ([kpmg.com](https://kpmg.com/cn/en/home/media/press-releases/2025/12/hk-reclaims-top-global-ipo-spot-in-2025-says-kpmg.html?utm_source=openai))

This surge in fundraising has had knock-on effects in hiring and compensation. Recruiters including Robert Walters report hiring increases in the financial services sector of 10-15% in 2026, particularly for front-office staff and deal teams. ([scmp.com](https://www.scmp.com/business/banking-finance/article/3333336/hiring-outlook-improves-hong-kongs-financial-sector-recruiters-say?utm_source=openai)) Boutique firms are expected to exhibit higher pay growth, especially for mid- and senior levels—Associates, VPs, Directors, Managing Directors—where base salary ranges are likely to widen. In contrast, bulge-bracket firms are seen as more likely to preserve existing base salary structures and shift increases toward bonuses or variable pay components. ([thebanker.com](https://www.thebanker.com/content/43916645-6398-4dcf-9aed-9d71d06b46fc?utm_source=openai))

However, caveats are significant. First, regulatory authorities have recently issued warnings to banks over the quality of IPO documentation, signaling that deal flow may face friction if due diligence or disclosure practices fail. ([ft.com](https://www.ft.com/content/a023b2aa-4bcf-4d1e-b465-84eff644defb?utm_source=openai)) Second, not all firms or sectors will benefit equally: performance, sector (e.g., tech, biotech, consumer), deal size (mega-IPOs vs smaller listings), and market sentiment—including international investor behavior—will influence both hiring and pay increases. Third, while boutiques often compensate aggressively, their ability to sustain large fixed cost bases (higher staffing, liability for reputational or regulatory issues) is more constrained, so pay increases are likely to be more variable and performance-driven. Fourth, macro risks—interest rates, geopolitical tensions—may dampen investor appetite, thereby moderating bonus pools even if headcounts rise.

Strategically, banks—bulge brackets and boutiques alike—must consider their compensation strategies carefully. Bulge-brackets may be better served preserving disciplined base pay while using bonuses and long-term incentives to reward value creators, especially given regulatory and capital return pressures. Boutiques, on the other hand, must balance aggressive compensation to attract senior deal-makers with careful risk management, given higher exposure per individual for deal missteps. For employees, the tight market suggests an opportunity to negotiate better total compensation, especially when moving to boutique firms or sectors with strong growth. Open questions remain about how sustainable this IPO boom is through the full fiscal year 2026, whether regulatory tightening will impact deal cadence or underwriting risk, and whether the expected wage growth will lead to inflation in banking labor costs, possibly compressing margins.