Chinese firms are capitalizing on renewed investor interest in Hong Kong’s IPO market, driven by excitement over AI. DeepSeek’s AI announcement in January sparked a rally, pushing the Hang Seng Index to three-year highs.

Hong Kong saw 15 IPOs in Q1 2025, raising HK$17.7 billion (US$2.27 billion), its strongest start since 2021. Six IPOs surpassed HK$1 billion (US$128.51 million), compared to just one last year.

Support from Beijing and stock exchange rule changes have encouraged listings, with major firms like CATL and Hengrui Pharmaceuticals joining in.

Despite this momentum, the market remains below its 2021 peak, when 32 IPOs raised HK$132.7 billion (US$17.05 billion).

Analysts caution that regulatory shifts and geopolitical uncertainties could impact future growth.