Illustration: Tang Tengfei/GT

So far this year, the total funds raised through IPOs in the Hong Kong Special Administrative Region (HKSAR) have exceeded HK$123 billion ($16.98 billion), placing the Hong Kong Exchanges and Clearing Ltd (HKEX) among the leading exchanges worldwide in terms of IPO financing, the China Securities Journal reported on Wednesday. 

As of Tuesday, 11 A-share listed companies had successfully debuted in Hong Kong this year. Another 49 A-share listed companies are in the HKEX's IPO pipeline, and more than 40 others have announced plans to seek a listing, according to data cited by the China Securities Journal.

This performance underscores Hong Kong's established role as a global financial hub and highlights the accelerating trend of Chinese enterprises pursuing "A+H" listings - the dual listing of shares on both the Chinese mainland's A-share market and the Hong Kong stock market - as part of their broader push toward global expansion.

A number of leading A-share companies with market capitalizations each exceeding 100 billion yuan have already tapped the Hong Kong market this year. These include Contemporary Amperex Technology Co (CATL), the world's largest electric vehicle (EV) battery producer, Hengrui Pharmaceuticals Co, a leading drug developer and producer, and Haitian Flavoring & Food Co, a major condiment maker, according to the report.

Their listings not only reinforce HKSAR's attractiveness as a financing center, but also signal a broader wave of Chinese mainland companies turning to international capital markets to fund their next stage of growth. The scale of this A+H trend indicates that the model is no longer a niche phenomenon, but a structural trend in China's capital market landscape.

Behind this wave of "A+H" listings lies a dynamic that is driven by a complex combination of factors including policy, capital and industrial structure adjustment.

Favorable policies have made Hong Kong's capital market more accessible and attractive for A-share companies. The HKEX has introduced reforms in listing rules and strengthened its connection with the Chinese mainland stock markets through initiatives such as Stock Connect. These measures have provided Chinese mainland companies with a more diversified fundraising channel.

Moreover, the surge in A+H listings this year is more than a financial event - it reflects the trajectory of China's economic transformation. As the country advances industrial upgrading and pursues high-quality development, Chinese companies are steadily enhancing their global competitiveness. In this context, turning to international capital markets is not only a means of financing but also a strategic step toward deeper integration with global industries and a greater international presence. Against this broader backdrop, the Hong Kong market serves as a key gateway to engage with international markets and global capital.

For example, CATL's Hong Kong listing underscores the global competition in the EV supply chain, where the company already commands more than one-third of the world's market share. Hengrui's move demonstrates the ambition of Chinese pharmaceutical firms to tap global research and development funding and expand their footprints in overseas drug markets. Haitian Flavoring's dual listing signals the rise of Chinese consumer brands with aspirations to compete internationally.

The bulk of applicants come from strategic emerging industries such as EVs, batteries, biopharmaceuticals, artificial intelligence, and advanced manufacturing. This aligns with national policy priorities, including the clean energy transition and the push for innovation-driven development.

With nearly 100 companies either in line or planning Hong Kong listings, it is expected that the momentum of the "A+H" wave will continue through the rest of 2025. Despite an increasingly complex global economic and trade landscape, Hong Kong remains a robust international financial center, whose advantages will be further consolidated.

Chinese enterprises are becoming more outward-looking, using capital markets not only to finance expansion but also to enhance branding and accelerate their path toward internationalization. This outward focus is expected to be further supported by the Hong Kong stock market, creating additional opportunities for both companies and investors.

The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn