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flag China's securities regulator supports IPOs in Hong Kong, causing a 9% surge in the Hang Seng Index.

flag China's securities regulator's support for IPOs in Hong Kong has boosted the city's $5 trillion stock market, causing a 9% surge in the Hang Seng Index, its best gain since 2011. flag However, dealmakers remain cautious about the plan's long-term success, as challenges such as weak IPO market, low valuations, and Beijing's uncertain economic outlook pose hurdles. flag Additionally, foreign investors' distrust of Beijing's policymaking further complicates the situation.

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