Hong Kong is on track to become the top global venue for initial public offerings (IPOs) by the end of 2025, driven by more Chinese companies listing and growing interest from international investors, according to UBS Group.

So far in 2025, 22 companies have raised US$7.7 billion in Hong Kong IPOs, surpassing other major markets.

This includes CATL, which held the largest IPO worldwide this year at US$5.2 billion.

If this trend continues, Hong Kong could regain its global IPO leadership for the first time since 2019, when it generated US$40 billion in proceeds.

UBS Securities expects up to 30 mainland Chinese companies will list in Hong Kong next year, with firms like Eastroc Beverage preparing to go public.

The revival of Hong Kong’s IPO market highlights renewed global interest, especially in dual-listed mainland and Hong Kong shares, which analysts say will support Hong Kong’s position as a leading IPO hub.

🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ Hong Kong’s resurgence benefits from mainland China’s tightened IPO environment

Hong Kong’s comeback as a leading IPO destination is connected to regulatory shifts in mainland China that have created a bottleneck for domestic listings.

Chinese regulatory authorities significantly reduced IPO approvals, with new listings dropping from 524 in 2021 to just 313 in 2023 as the China Securities Regulatory Commission implemented stricter controls on domestic fundraising1.

This regulatory tightening created a sharp decline in mainland IPO activity, with Q1 2024 showing a 56% year-over-year drop in proceeds raised, leading high-quality Chinese companies to look toward Hong Kong as an alternative venue2.

The difference between mainland China’s restrictive approach and Hong Kong’s more open stance explains why many Chinese companies are pursuing H-share listings, enabling Hong Kong to potentially reclaim the global IPO leadership title it last held in 2019.

2️⃣ Dual-listing strategy evolves as concerns about price gaps diminish

A key historical barrier to A+H dual listings (companies listed on both mainland exchanges and Hong Kong) has been the fear that Hong Kong listings would negatively impact mainland share prices due to valuation gaps.

Midea Group’s successful Hong Kong offering has created a new template for dual listings by demonstrating that H-shares can perform strongly without undermining A-share valuations, with its discount narrowing to just 3% compared to the 25% average discount for all 160 dual-listed Chinese companies.