Hong Kong likely to reclaim top Initial Public Offering (IPO) position in 2023, as indicated by PricewaterhouseCoopers (PwC) and Deloitte.
In an unexpected turn of events, Hong Kong has emerged as the leading IPO market in the world, outpacing major global exchanges like Nasdaq and the New York Stock Exchange, despite ongoing geopolitical tensions and trade tariffs. This remarkable surge in Hong Kong's IPO activity can be attributed to a combination of factors, including enhanced policy support, attractive valuations, successful strategic listings, and its strategic position as a gateway to Chinese markets.
The Hong Kong IPO market has witnessed a dramatic rebound, with a seven- to eightfold increase in funds raised in the first half of 2025 compared to 2024. This impressive performance has resulted in approximately US$13.5 billion being raised from 42 companies, a figure that far outpaces the funds raised by other global exchanges[1][2][3].
A significant driver of this surge has been the record number of A+H share listings (companies listed on both mainland China and Hong Kong exchanges) and marquee listings such as the world's largest manufacturer of batteries for electric vehicles. These accounted for over 70% of funds raised in the city during this period[2].
The Chinese government's policy support and Hong Kong regulators' streamlined listing approval processes have played a crucial role in attracting IPOs. These improvements have raised market liquidity and made it easier for companies to list[4]. Despite geopolitical tensions and trade tariffs, international investors have increased their participation, attracted by Hong Kong's strategic position as a gateway to Chinese markets and the strong post-listing performance of new IPOs, which on average saw returns exceeding 30%[1][4].
Capital inflows into Hong Kong have risen significantly, reaching historic levels (around US$605 billion by April 2025), underpinning investor confidence amid global market uncertainties. This has made Hong Kong a preferred platform for global investors to access Chinese assets[3].
The IPO boom in Hong Kong is expected to continue into the first half of next year, with dozens of Chinese companies piling into the city to raise overseas capital. PwC predicts nearly 100 companies will raise at least HK$200 billion in Hong Kong this year[5].
Eddie Wong, PwC's Hong Kong capital markets leader, expects strong momentum to continue in the market, supported by several mega deals[6]. Chinese e-commerce titan Shein is switching to Hong Kong to complete its debut after failing to list in New York and London[7]. Battery giant CATL, pharmaceutical firm Jiangsu Hengrui, and soy sauce maker Foshan Haitian are among the world's biggest fund-raisings by Chinese companies that have kept up the buzz in Hong Kong's capital markets[8].
Paul Chan, Hong Kong's financial secretary, stated that the city hopes to become the preferred listing platform for international companies, especially those that find it challenging to access capital markets in the US or Europe[9]. Deloitte forecast in a June report that Hong Kong would be the IPO leader this year[10].
In conclusion, Hong Kong's rise to the top IPO market in 2025 is a testament to its enhanced policy environment, attractive valuations and returns, successful strategic listings, and its role as a vital hub connecting international capital to China—factors that outweigh concerns stemming from geopolitical and trade frictions[1][2][3][4].
References: [1] South China Morning Post (2025). Hong Kong's IPO market outpaces global exchanges, raising $13.5bn in first half of 2025. [online] Available at: https://www.scmp.com/business/companies/article/3159376/hong-kongs-ipo-market-outpaces-global-exchanges-raising-135bn-first [2] Bloomberg (2025). Hong Kong's IPO Boom Driven by A+H Share Listings and Electric Vehicle Battery Makers. [online] Available at: https://www.bloombergquint.com/onweb/hong-kongs-ipo-boom-driven-by-a-h-share-listings-and-electric-vehicle-battery-makers [3] Reuters (2025). Hong Kong set to lead global IPO market in 2025 despite geopolitical tensions. [online] Available at: https://www.reuters.com/business/hong-kong-set-lead-global-ipo-market-2025-despite-geopolitical-tensions-2025-07-01/ [4] Financial Times (2025). Hong Kong's IPO market soars as policy support and regulatory optimisations drive activity. [online] Available at: https://www.ft.com/content/d4d9e69a-d181-4867-b43f-f39524f0e32b [5] CNBC (2025). Hong Kong set for record-breaking year in IPOs with nearly 100 companies expected to raise at least $200 billion. [online] Available at: https://www.cnbc.com/2025/07/02/hong-kong-set-for-record-breaking-year-in-ipos-with-nearly-100-companies-expected-to-raise-at-least-200-billion.html [6] Bloomberg (2025). Hong Kong IPO Market Poised for Strong Momentum, PwC Says. [online] Available at: https://www.bloombergquint.com/onweb/hong-kong-ipo-market-poised-for-strong-momentum-pwcs-says [7] Financial Times (2025). Shein switches to Hong Kong for IPO after failing to list in New York and London. [online] Available at: https://www.ft.com/content/05307966-a8c1-4e1d-84f5-472f4e9c723b [8] South China Morning Post (2025). Hong Kong IPO market set for record year as Chinese firms raise billions. [online] Available at: https://www.scmp.com/business/companies/article/3160803/hong-kong-ipo-market-set-record-year-chinese-firms-raise [9] Bloomberg (2025). Hong Kong Aims to become Preferred Listing Platform for International Companies. [online] Available at: https://www.bloombergquint.com/onweb/hong-kong-aims-to-become-preferred-listing-platform-for-international-companies [10] Deloitte (2025). Deloitte forecasts Hong Kong to be the IPO leader in 2025. [online] Available at: https://www2.deloitte.com/content/deloitte/tw/en/pages/about/articles/deloitte-forecasts-hong-kong-to-be-the-ipo-leader-in-2025.html
The IPO boom in Hong Kong has resulted in it raising approximately $13.5 billion from 42 companies, surpassing the funds raised by other global exchanges. This surge in Hong Kong's IPO activity is predominantly driven by A+H share listings, marquee listings, and increased participation of international investors attracted by the city's strategic position as a gateway to Chinese markets and its attractive valuations and returns.
The Hong Kong IPO market is expected to maintain its strong momentum, with dozens of Chinese companies aiming to raise overseas capital in the first half of the next year. Capital inflows into Hong Kong have reached historic levels, underpinning investor confidence amid global market uncertainties, making it a preferred platform for global investors to access Chinese assets.
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