The hair removal party in Shenzhen has all switched to Hong Kong stocks IPO trading.

A vibrant city always attracts ambitious individuals, and Shenzhen is such a city.

Over forty years ago, Shenzhen was just rice paddies and a few fishing villages on the eastern bank of the Pearl River Estuary. But in the following forty years, it turned Huaqiangbei into the world's largest electronic components distribution center, transformed Dafen Village into the global oil painting factory, and became the birthplace of Huawei, Tencent, DJI, and BYD. In this city, many have taken advantage of price differences through information, liquidity, and regulatory arbitrage.

Arez is a typical Shenzhener.

In his early thirties, he and his friends opened a rug-pulling studio in an office building in Nanshan, where they made a good amount of money for the team during airdrops on Arbitrum, Starknet, and LayerZero in 2023. At its peak, he managed thousands of on-chain addresses, ran scripts, used IP proxies, provided KYC resources, and handled fund rotations.

A year ago, during an interview with Arez by BlockBeats in the article "Rug Pulling Intensifies, but Smart Rug Pullers Still Earn Monthly Incomes of Thousands?" his rug-pulling studio, although it had set up a Hong Kong IPO subscription group, still primarily focused on rug-pulling in the cryptocurrency circle.

However, starting in the second half of the year, Arez's rug-pulling studio decided to pivot fully to Hong Kong IPO subscriptions.

Hong Kong IPO Subscriptions: From "Little Sunshine" to "Bull Market"

To understand why Arez's rug-pulling studio shifted its focus, let's first discuss how attractive the current "Hong Kong IPO subscription" is.

Since the beginning of 2026, over 80% of the newly listed stocks on the Hong Kong stock market have seen their prices rise on the first day of trading, with an average first-day gain of over 38%.

By the end of the first quarter, Hong Kong had seen 40 new listings, raising a total of HK$109.9 billion, surpassing other global major exchanges such as Nasdaq (21 listings) and the New York Stock Exchange (15 listings) to top the global first-quarter IPO fundraising chart.

Image Source: Snowball

Most of the top performers are in deep tech. On January 2, the first day of the year, Birch-Tech became the first domestically produced GPU company listed on the Hong Kong stock market, with an IPO price of HK$19.6. It was oversubscribed 2346.5 times in public offering and rose by 75.82% on the first day. On January 9, MiniMax surged 109.1% on its debut, reaching a market cap of over HK$100 billion. On February 13, Haizhi Technology Group soared by 242.20% on its first day of trading.

What impressed Arez the most was the craziest three days in April. Since April, the new listings have been more exaggerated, with across-the-board gains and no first-day breakers.

On April 16, Think Power officially went public. A distributed energy storage company founded by a Huawei team, its revenue grew from 580 million to 9 billion over two years. The stock price doubled on the first day of trading, with a maximum profit of over 34,000 Hong Kong dollars per hand for lucky draw winners. The entry fee was 32,700, and investors doubled their investment within a day. The entire Shenzhen new listing circle was buzzing that night. The next day, April 17, Groupcore Technology and Long Light Core Wisdom debuted one after another. Groupcore Technology was the first IPO of the "Hangzhou Six Small Dragons" and rose by 144% on the first day, with a cumulative increase of nearly 4 times over two trading days. Long Light Core Wisdom also went public on the same day, rising by 75% on the first day, and a few days later reaching a high price that was more than 145% above the issue price.

Three days, three new listings, each making lucky draw winners extremely happy.

According to LiveReport's big data statistics, since 2026, with each Hong Kong new stock lucky draw per hand sold at the opening price, the book profit from Hong Kong stock new listings in 2026 (excluding handling fees) has exceeded 128,000 Hong Kong dollars.

This is no longer a "small spring" for Hong Kong stock new listings but a "bull market" for Hong Kong stock new listings.

The Scalpers in Shenzhen Have All Turned Their Focus to Hong Kong Stock New Listings

According to Arez, not only his scalping studio but also several scalping offices he knows in Shenzhen have either had a business in Hong Kong stock new listings all along or have shifted most of their focus to Hong Kong stock new listings since the second half of 2025.

"We mainly have two ways of playing," Arez told BlockBeats: "One is to apply for new listings with our own account matrix to earn lucky draw profits, and the other is the gameplay we learned this year and are still practicing, collaborating with some mainland distributors and Hong Kong tour groups to bring new customers to banks and brokerages, receiving CPA commissions per head."

Million-Dollar Net Profit in April

Let's review Arez's operations during the craziest week in mid-April 2026.

When applying for new listings himself, Arez mainly analyzes new listings from several aspects: good fundamentals, high market heat, large-cap stocks, low issue valuation, and high subscription multiples.

"Taking the recent example, Think Power perfectly hit every point." The energy storage track where Think Power operates is the fundamental aspect; the Huawei team brings market heat and a narrative; and the 4.4 billion Hong Kong dollars raised is a large-cap stock.

“Most importantly, Sigen New Energy has a high entry barrier, with an offering price of HK$324.2, 100 shares per lot, and requiring HK$32,700 to subscribe for one lot. The high entry barrier means fewer retail investors participating and a higher chance of allotment,” analyzed Arez.

On April 8, Sigen New Energy started its IPO. That morning, Arez and his partners had a meeting and were both very bullish on this new stock. They decided to apply for the maximum shares per account and fully utilize margin financing.

Over the next few days, Arez's team became very busy. “But when the allocation results were announced, we were still quite lucky,” he said.

On April 15, from 16:15 to 18:30, the dark pool opened, and Sigen New Energy soared by over 81%, giving a paper gain of HK$26,000 for one lot. Arez liquidated most of the position in the dark pool, locking in the initial gains. The next day at the market open, Sigen New Energy opened at HK$581, and the remaining position was sold within the first half hour of trading. This was followed by a double surge from Groupcore Technology and Changelight Group on April 17.

Within less than half a month, Arez's studio made close to a million Hong Kong dollars in profit.

Comparing it to the Arbitrum frenzy in 2023, the studio's profit was of a similar magnitude, but the ARB project took a full 14 months from the start of interaction to token issuance.

A typical rug pull project takes an average of 12-18 months from the start of interaction to token issuance. During this period, funds are locked up, ETH prices may plummet, and the project team may also delay.

However, the Hong Kong IPO market provided a completely opposite signal, with a short cycle, fast feedback, and high certainty. The whole process from IPO to listing for a new stock is only 7 to 10 days.

Turning New Account Opening into a Profitable Business

Open V2EX, Zhihu, Xiaohongshu, Xianyu, Telegram, search for “Changqiao cashback,” “Futu referral code,” “Tiger Channel rebate,” and you will see a CPA affiliate marketing market more mature than Taobao customers.

“The minimum commission a brokerage gives to a channel is HK$500. For the rebates we provide on the Internet, we generally give back HK$250 to the customer, and the rest is our intermediary net profit,” said Arez. He mentioned that participating in IPOs is like a main business, while earning commissions is a passive side business.

Arez also revealed to BlockBeats: “An intermediary with a stable channel can earn HK$1500-3000 in total revenue from bringing in one customer.”

According to data, in the first quarter of 2024, HSBC Hong Kong added 130,000 private banking clients; by the first quarter of 2025, this number soared to 300,000. This wave of new accounts has led to a thriving agency ecosystem. For example, the service fee for opening an HSBC Hong Kong account for those coming to Hong Kong is $120, while the fee for opening an account on the mainland is $250.

In early 2026, Arez's studio also set up a "Hong Kong Trip for Account Opening + Securities Account Opening" team, with a reasonable pricing strategy. The fee for guiding a single client through the entire process (2 Hong Kong bank accounts + 3 securities accounts) is $200-$350. The comprehensive gross profit per client is around $300-$500.

"The process is just like a tour group, gathering at a designated location in Shenzhen, going through immigration together, being accompanied throughout the whole process, and visiting bank branches in Central, Yuen Long, and Tsuen Wan in rotation," Arez told BlockBeats.

They even partnered with some tour groups to include visits to Victoria Harbour and Tsim Sha Tsui in the itinerary. If they handle 5 clients in a month, they can generate a stable cash flow of around $10,000.

This amount of money may not be substantial. But compared to the uncertainty of "waiting for a year and a half for new token issuance," the stable monthly income is also one of the reasons why the token issuance studio is truly willing to transform.

Furthermore, recently, while chatting with friends, BlockBeats discovered a new trend, which is online IPO subscriptions for Hong Kong stocks. Users only need a wallet, deposit USDT/USDC, complete KYC, and then they can directly trade Hong Kong stocks on the chain, including participating in Hong Kong IPO subscriptions.

It is foreseeable that as the frenzy for Hong Kong stock IPO subscriptions intensifies, the "online Hong Kong stock IPO subscription" track will also become increasingly lively in the future.