Hong Kong file photo

In the first half of 2025, the Hong Kong IPO market boomed, according to data from Wind. A total of 43 IPO projects were completed, up 13 projects year-on-year, the paper.cn reported. The total funds raised reached HK$106.713 billion ($13.59 billion), up 688.54 percent and exceeding the full-year total of HK$88.147 billion in 2024.

The surge signals the city's resurgent role as a global capital gateway, linking Chinese mainland companies with international capital, analysts said.

As of June 30, there were 220 companies in the IPO queue, a significant rise from the same period in 2024, reflecting robust market vitality. This compared with only 80 listing applications throughout 2024. 

The number of filings was particularly concentrated in June. On June 27 alone, 16 mainland-based enterprises submitted applications to the Hong Kong Stock Exchange (HKEX) for listing on the main board. By industry, 10 of these 16 enterprises were from the technology sector, four from the healthcare sector, one from the food industry, and one from the consumer goods industry.

According to Deloitte's review of Hong Kong's IPO market in the first half of 2025, initiatives encouraging leading mainland enterprises to list in Hong Kong, streamlined IPO approval processes, stable market valuations, improved liquidity, and enhanced capital absorption capacity all contributed to the buoyancy. Several large and mega-sized H-share listings also fueled the surge in fundraising.

Since the start of 2025, a significant number of A-share listed companies have debuted on the HKEX, contributing to the city's booming IPO market. Notably, the top four fundraisers—Contemporary Amperex Technology Co, Jiangsu Hengrui Pharmaceuticals Co, Foshan Haitian Flavouring and Food Co, and Zhejiang Sanhua Intelligent Controls Co—have collectively amassed more than HK$71.8 billion in capital through their Hong Kong listings, accounting for nearly 70 percent of total fundraising by IPOs.

Hong Kong's Securities and Futures Commission (SFC) and the HKEX further fueled this IPO momentum with policy incentives. In May, it launched a dedicated technology enterprises channel to facilitate new listing applications from prospective technology companies.

This trend reflects the city's unique advantages as an international financial center, providing access to diverse global capital sources and enhanced international exposure, which are crucial for companies looking to expand their business reach and optimize their capital structure, Xi Junyang, a professor at the Shanghai University of Finance and Economics, told the Global Times on Tuesday.

"This not only deepens the capital market's pool but also strengthens its competitiveness, further solidifying Hong Kong's standing as a leading global financial hub," he added.

Dong Shaopeng, a senior research fellow at the Chongyang Institute for Financial Studies at Renmin University of China, told the Global Times on Tuesday that Hong Kong's capital market has been characterized by strong liquidity and increased investor activity recently. With a sophisticated investor base with clear valuation criteria, the market has become an appealing destination for mainland enterprises. 

"Since April, we've seen a notable rise in the number of mainland companies choosing to list in Hong Kong," Dong said.

Deloitte predicts that Hong Kong's new stock market could raise HK$200 billion through 80 IPOs in 2025. Besides approximately 25 "A+H" new listings, most projects are expected from the technology, media, telecommunications, and consumer sectors.

A research note from CITIC Securities indicated that a wave of A-share companies listing in Hong Kong is likely to occur in the second half of 2025. The "A+H" listing model is thriving, with many A-share listed firms eyeing the Hong Kong exchange for spin-off listings, according to CITIC Securities.