Hong Kong's IPO Market Reignites with $14B Surge in First Half of 2025

HONG KONG – After years of sluggish activity, Hong Kong’s IPO market is roaring back to life, powered by record listings, policy boosts from Beijing, and rising delisting concerns in the U.S.

According to data from Dealogic, new listing volume on the Hong Kong Stock Exchange soared to $14 billion in the first half of 2025, up nearly eightfold from $1.8 billion in the same period last year. With 43 IPOs already completed, Hong Kong is now pacing to overtake Nasdaq and the New York Stock Exchange as the world's top listing venue this year.

Behind this revival is a mix of powerful forces. Beijing’s renewed support for overseas listings, a slowdown in A-share IPOs on mainland exchanges, and fears over Chinese firms being delisted from U.S. markets have collectively driven mainland giants to raise funds in Hong Kong.

The trend is also amplified by Southbound Stock Connect inflows, as mainland investors flood Hong Kong equities, especially in tech and AI, triggering record liquidity in recent months. According to HSBC and Wind Information, these cross-border investments now account for nearly half of Hong Kong’s daily trading turnover.

High-profile names like Contemporary Amperex Technology Co. Ltd. (CATL) raised over $5 billion in a secondary listing in May, marking the world’s largest IPO so far this year. More than 200 IPO applicants are currently in the HKEX pipeline, over 40 of which are already listed on Chinese exchanges.

Analysts point to several strategic motives: capitalizing on favorable valuations, seeking global expansion, and hedging against geopolitical uncertainties, including looming U.S. regulatory actions.

The Hang Seng Index has climbed 21% year-to-date, buoyed by rising investor confidence and the Chinese government's pivot toward supporting the private sector. Hong Kong’s regulators are also streamlining listing procedures for emerging sectors like AI, biotech, and renewable energy, making the city an attractive launchpad for innovation-driven firms.

Industry experts suggest the momentum may continue into the second half, especially with PwC projecting over 100 IPOs in 2025, potentially raising more than $25.5 billion by year-end.