Hong Kong regaining status as premier IPO market

Hong Kong's initial public offering market is gaining depth and dynamism and reinforcing its role as a premier global listing venue, with abundant liquidity, attractive valuations and market reforms contributing to the resurgence of IPO activities, global auditing firms and investment managers said.

The Hong Kong bourse gained 18 percent in 2024 and has risen another 20 percent so far this year, and IPOs on the Hong Kong stock exchange have raised about $16 billion so far in 2025, making the city the top global IPO venue, according to Hong Kong Special Administrative Region Financial Secretary Paul Chan Mo-po.

Shenzhen-listed battery giant Contemporary Amperex Technology raised over HK$41 billion ($5.22 billion) by listing shares on the Hong Kong stock exchange in May, the world's largest equity offering to date this year. The CATL's listing has attracted many US and European funds as the major new share subscribers.

Data compiled by PricewaterhouseCoopers (PwC) show 44 IPOs took place in Hong Kong in the first half of this year, representing an annual increase of 47 percent.

PwC said the fundraising amount in the first half of 2025 has already surpassed the entire amount raised in 2024.

Global business accounting firms such as PwC and Deloitte argue that strong capital flows associated with the high level of liquidity in Hong Kong's banking system are creating favorable conditions for IPO fundraising in the second half of the year. They expect Hong Kong to regain the status of being the first fundraising platform globally in terms of IPO proceeds this year.

The SAR's finance chief said total bank deposits in Hong Kong now exceed $2.3 trillion, equivalent to six times the city's gross domestic product. The figure grew 7 percent last year and by another 7 percent so far this year.

"Improved market liquidity and rising valuations are encouraging more companies to turn to Hong Kong's capital markets, underscoring the city's long-term financial resilience," PwC Hong Kong Capital Markets Leader Eddie Wong Kamchin said.

He added that Hong Kong Exchanges and Clearing has undertaken market reforms, including creating more favorable conditions for various company types, streamlining approval processes, and enhancing transparency and efficiency.

The Securities and Futures Commission in Hong Kong and HKEX have further ramped up the city's IPO listing regime by launching a dedicated "Technology Enterprises Channel" in May to further facilitate new listing applications from prospective specialist technology companies and biotech companies.

"A-share listed companies are capitalizing on Hong Kong's international fundraising platform to access global capital. At the same time, HKEX's new policy initiatives such as the Technology Enterprises Channel are set to facilitate listings of more biotech and specialist technology companies, further fueling growth in fundraising volumes," Deloitte China Southern Region Managing Partner Edward Au Chunhing noted.

PwC and Deloitte project total fundraising from Hong Kong IPOs will exceed HK$200 billion this year, contributed by 80 to 100 deals, mainly from technology, media and telecommunications, as well as consumer companies.

Global investment fund managers argue that a lower HIBOR(Hong Kong Interbank Offered Rate) could provide mild impetus to Hong Kong dollar-denominated assets, likely bolstering the Hong Kong IPO market.