Hong Kong experienced a 33 percent year-on-year rise in initial public offering (IPO) listings in the first half of 2025, making it the third busiest stock exchange globally by deal count, while it also led the world in IPO fundraising.
Citing data from accounting firm Ernst & Young, the Standard reports that the number of deals came in at about 40 while fundraising proceeds totalled HK$108.7 billion (US$13.8 billion) for the period. The sum is a more than sevenfold increase compared with the first six months of 2024 and accounted for 24 percent of global IPO proceeds – putting Hong Kong ahead of Nasdaq and the New York Stock Exchange, which placed second and third respectively.
Bloomberg described the market experiencing a “frenzy” after having been “forsaken by investors and companies for many years.” Behind the action are Chinese companies that want to access global funds while attracting domestic investors, aided by favourable rules revisions from Hong Kong. Investors are also increasingly looking to diversify out of the US due to hostile trade and geopolitical policies from Washington.
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One such company is the world’s largest battery maker, Contemporary Amperex Technology, which debuted on the Hong Kong Stock Exchange in May. Its HK$41 billion listing has been the biggest deal of its kind so far in 2025. Other major companies following in its footsteps reportedly include the mainland’s second biggest ride-share operator, CaoCao; Tesla parts supplier Zhejiang Sanhua Intelligent Controls; soya sauce giant Foshan Haitian Flavouring & Food; the carmaker Seres; energy drink maker Eastroc Beverage; and robotics firm Estun Automation.
Other deterrents to listing in the US were its inconvenient time difference and Beijing’s capital controls, Bloomberg noted. Residents of the mainland face limitations on how much yuan they can convert into foreign currency, but eligible investors can avoid this restriction to access companies on Hong Kong’s Hang Seng Composite Index – and others – by using a cross-boundary channel known as Stock Connect.
The Hong Kong Stock Exchange is also hoping to attract companies already listed in Southeast Asia and the Middle East, Reuters reported, quoting its chief executive Bonnie Chan. “We’re now more focused on companies which are actually already listed on another market, but might have outgrown their domestic market,” Chan said.
