Hong Kong’s IPO Market Roars Back — What’s Powering the Surge in 2025?

Hong Kong’s IPO market is experiencing a stunning comeback, with over $14 billion raised in H1 2025. Backed by Beijing’s regulatory support and mainland capital inflows, the city is on track to become the world’s top listing venue this year.

Hong Kong Reclaims Its Global IPO Crown

After several sluggish years, Hong Kong’s initial public offering (IPO) market is roaring back in 2025, driven by a wave of Chinese companies seeking to raise capital abroad.

According to Dealogic, IPO fundraising in Hong Kong skyrocketed to $14 billion in the first half of 2025 — an eightfold increase compared to the $1.8 billion raised during the same period in 2024 (excluding SPAC listings). This marks the strongest first half-year performance since 2021.

Projected to Overtake Nasdaq and NYSE in 2025

Accounting firm PwC forecasts up to 100 IPOs in Hong Kong this year, with total proceeds expected to surpass $25.5 billion, positioning the city as the largest IPO destination globally, outpacing even Nasdaq and the New York Stock Exchange.

What’s Fueling the IPO Boom?

🔹 1. Policy Tailwinds from Beijing

Beijing has fast-tracked regulatory approvals for tech firms looking to list offshore and actively encouraged dual listings on the Hong Kong exchange. The launch of the “Technology Enterprises Channel” in May 2025 further streamlines IPO approvals for innovation-driven companies.

🔹 2. A-to-H Dual Listings

Mainland-listed companies (A-shares) are increasingly pursuing secondary listings in Hong Kong (H-shares) to tap international investors and mitigate delisting risks in U.S. markets.

Notably, battery giant CATL raised over $5 billion in its May 2025 Hong Kong listing — the world’s largest secondary offering this year.

🔹 3. Mainland Capital Inflows

Investor interest from mainland China has surged. Net southbound inflows via Stock Connect reached record highs in Q2 2025, making up nearly 50% of Hong Kong’s daily stock turnover, according to HSBC estimates.

🔹 4. Improved Market Sentiment

The Hang Seng Index has climbed over 21% YTD, making Hong Kong one of the best-performing stock markets globally. This bullish sentiment is attracting both institutional and retail investors back into IPO deals.

New Listings Span AI, Consumer, and Tech Sectors

H1 2025 saw 43 new listings in Hong Kong, raising $13.6 billion — more than double the entire amount raised in 2024.

More than 200 IPO applications are now pending with the HKEX, with over 40 companies already listed on mainland exchanges. Key players entering the market include:

Mixue Group (bubble tea chain)

Guming Holding

Caocao Inc. (ride-hailing platform)

These companies view HKD fundraising as a gateway to global expansion, especially as Hong Kong offers greater currency flexibility compared to the Chinese yuan.

U.S. Tensions Spark a “Plan B” Listing Trend

With ongoing U.S.-China tensions and looming delisting risks, many Chinese firms are opting for dual listings to ensure access to international capital even if U.S. listings become untenable.

“A secondary listing essentially provides insurance in case delisting from U.S. exchanges becomes unavoidable,” said Perris Lee, Head of ECM at Dealogic.

A More Inclusive Market for Emerging Industries

Hong Kong’s stock exchange is evolving to better accommodate AI, renewable energy, biotech, and digital consumer tech — sectors that align with China’s innovation priorities and the global investment landscape.

According to BNP Paribas, this inclusivity makes Hong Kong a strategic launchpad for mainland firms looking to diversify beyond domestic markets.

Conclusion: Hong Kong Reclaims Its IPO Momentum

Hong Kong’s IPO rebound in 2025 is no coincidence — it's the result of strategic policy, shifting capital flows, and growing investor confidence.

With regulatory tailwinds, high-quality deal flow, and geopolitical shifts pushing companies toward more diversified fundraising options, Hong Kong is poised to dominate global equity capital markets once again.