After years of sluggish activity, Hong Kong’s IPO engine is roaring back to life, with the city’s exchange positioning itself as a dominant force in global capital markets in 2025. Powered by a surge in Chinese dual-listed firms and improving market sentiment, new projections suggest that IPO proceeds could hit HK$250 billion (~US$32 billion)by year’s end.
This rebound has prompted a wave of optimism from the Big Four accounting firms, all of whom have sharply upgraded their IPO fundraising forecasts for the region. According to KPMG, a record 219 IPO applications were under review by the Hong Kong Stock Exchange (HKEX) as of June 30 — 210 of which were for the main board. This marks the highest ever number of active listings in progress at mid-year.
First-Half Momentum
In the first six months of 2025, 44 companies successfully went public in Hong Kong, up nearly 50% year-on-year, while total fundraising skyrocketed more than sevenfold to HK$107.1 billion. This resurgence saw HKEX surpass both Nasdaq and NYSE to become the top global exchange for IPO proceeds during H1 — its strongest performance since 2016.
The “A+H” Effect: China’s Dual-Listing Boom
A major driver behind this surge is the rise in “A+H” dual listings, with Chinese firms tapping both domestic and Hong Kong markets for capital. Four of the world’s top 10 IPOs this year — including giants like Contemporary Amperex Technology and Jiangsu Hengrui Medicine — opted for secondary listings in Hong Kong following their A-share debuts. Combined, they raised more than HK$93 billion.
Seven of these “A+H” listings alone brought in HK$77 billion — accounting for 72% of Hong Kong’s total IPO volume. With 44 more “A+H” filings pending, including seven firms with market capitalizations exceeding 100 billion yuan, the second half of the year is poised for further blockbuster listings.
KPMG expects that 60–70% of these filings could materialize in 2025, with two or three mega-IPOs projected to raise over HK$10 billion each.
Industry-Wide Optimism
KPMG’s revised forecast now expects over 100 IPOs this year raising more than HK$200 billion, a significant upgrade from its earlier prediction of HK$100–120 billion from 80 listings.
Other Big Four firms share the optimism:
- PwC anticipates two to three more mega-IPOs in H2 2025
- EY and Deloitte both project total fundraising between HK$160 billion and HK$220 billion
This consensus reinforces Hong Kong’s renewed stature as a preferred launchpad for ambitious listings from Asia and beyond.
Mainland Surge Adds Fuel
Meanwhile, China’s domestic IPO market is also heating up. June saw over 140 A-share IPO applications accepted by the China Securities Regulatory Commission (CSRC) — a sharp spike from the monthly average of 15 in the previous five months. The rush was partly driven by companies attempting to beat the mid-year financial reporting deadline to avoid updating audited figures.
Still, analysts suggest that Hong Kong continues to benefit from the mainland’s slower IPO cycle since late 2023, with many globally-focused Chinese firms preferring to tap international capital via Hong Kong before returning home.
Policy Shifts and Strategic Listings
Adding complexity — and opportunity — to this dynamic is a new policy from China’s State Council and the Communist Party, which now allows Greater Bay Area companies listed in Hong Kong to pursue additional listings in Shenzhen. This has sparked speculation about potential mainland debuts for major names like Tencent Holdings, which meets both the headquarter location and market cap thresholds for eligibility.
While dual-listing rules for such companies are still pending, the strategic intent is clear: build deeper capital bridges between Hong Kong and the mainland.
Global Positioning
Together, Hong Kong and China’s A-share markets represented 40% of global IPO proceeds in H1 2025, underscoring Asia’s rising prominence in equity capital formation. While Shanghai ranked fourth globally with US$4.5 billion raised, Hong Kong topped the charts, outpacing Nasdaq, NYSE, and India’s NSE in first-half fundraising.
365247 View:
Hong Kong’s IPO renaissance is more than a market rebound — it’s a strategic reassertion of its role as the gateway for Chinese capital to the world. With global interest peaking and dual listings accelerating, the region is now at the forefront of a reshaped global equity landscape. Investors, regulators, and founders alike should be watching closely — the next phase of Asia’s financial dominance may just be launching from Hong Kong’s trading floor.
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IMAGE: FinanceAsia
