Hong Kong companies are rushing to issue convertible bonds to take advantage of high share prices in early 2026. Eleven firms have raised US$7.4 billion through convertible bonds in the first five weeks, nearly 47 percent of last year's total of US$16 billion, according to Dealogic. Tianqi Lithium announced plans to raise about HK$5.9 billion (US$755 million) through a share placement and convertible bond. Chinese broker Huatai Securities said it would issue HK$10 billion in convertible bonds. Earlier, sportswear company Xtep revealed plans to issue HK$500 million in convertible bonds to investors. Olivia Li, head of Greater China equity-linked business at Citi, said, "The volume has been pretty crazy since the beginning of January." She noted that many companies are seizing the current strong equity market to raise funds. Convertible bonds can be converted into shares at a fixed price, often set above the current share price. High share prices help issuers set a favorable conversion price and boost investor confidence that converting the bonds to shares will be profitable. Bankers expect this trend to continue as firms keep capitalizing on strong market sentiment before Lunar New Year.