Beijing welcomes Hong Kong's development as a fundraising center. Chinese and Hong Kong stock market authorities are stepping up initiatives to facilitate capital flows, with a clear goal: to promote the high-quality development of Chinese financial markets. This requires close ties between mainland China and Hong Kong.
Chinese multinationals seeking international listing are looking to diversify beyond a single listing. The risk of delisting in the United States remains low, but is considered too uncertain. Hong Kong, with its reputation for openness, appears to be the natural alternative for Chinese groups with an international focus.
Dual listings boost the amounts raised
A+H dual listings (mainland China + Hong Kong) accounted for 72% of the region's IPO volume in the first half of the year. Among them, CATL, a giant in electric vehicle batteries, raised more than $5bn in the largest secondary offering of the year.
The financial center is also establishing itself as a gateway to Asia for international groups. According to Wind Information, more than 200 companies are currently preparing to list on the Hong Kong Stock Exchange, including around 40 already listed in mainland China.
A buoyant climate, bucking the trend in other markets
While London is recording its lowest level of IPOs since 1995 and mainland China remains moderate, Hong Kong is attracting and promoting IPOs, particularly in the technology and biotechnology sectors. In May 2025, the authorities launched the "Technology Enterprises Channel," a scheme designed to facilitate the IPO of innovative companies.
This buzz is part of a favorable stock market environment: the Hong Kong index significantly outperformed mainland China's in the first half of the year, ranking among the best performers in the world. This is a major asset in attracting institutional investors and companies.
Another driver of this momentum is Stock Connect, which links the Shanghai, Shenzhen, and Hong Kong markets. This system allows mainland investors to buy shares in Hong Kong, and vice versa. According to HSBC, 50% of the volume traded in Hong Kong this semester came from mainland China, strengthening liquidity and fueling the prevailing optimism.
Symbolic of this momentum, Shein, which was once expected to list in London, now seems to be leaning towards Hong Kong for its IPO.
Hong Kong already leading the way for 2025
The trend is taking hold, with a record 75 companies filing for IPO in June. The combination of geopolitical factors, regulatory reforms and strong liquidity should make Hong Kong the leader in IPOs this year, while other markets struggle to take off. All these dynamics are interconnected and reflect a movement that could last.
