Hong Kong is back on top of the global IPO rankings. In the first half of 2025, companies raised more money here than on Nasdaq or NYSE. The city is once again the world’s number one market for IPOs.
In the first half of this year alone, 42 companies raised US$13.5bn on the main board of the Hong Kong Exchanges and Clearing Limited (HKEX), compared to US$8.85bn on Nasdaq and US$7.52bn on NYSE, according to LSEG data. The number of active main board listing applications in Hong Kong exceeded 200, a record high, according to KPMG. It’s a shift in confidence that many of us had been waiting for.
A big part of the story is the recovery in valuations. After the Hang Seng Index peaked above 31,000 in 2020–2021, we went through four tough years. By early 2024, the index had fallen below 15,000, down 50% from the top. Daily turnover reflected the downturn, falling from HK$200bn in Q1 2021 to below HK$100bn by Q1 2024. But sentiment has since turned. The Hang Seng Index has bounced back to late 2021 levels, rising by 2.9% in July. Average daily trading volume has also surged to over HK$240bn.
Some of that money is coming from across the border. With interest rates low in mainland China, investors there have been looking for better returns. Hong Kong is the natural place to go. And since Trump’s “Liberation Day” back in April, we’ve seen more capital leave the US. A portion of that has come back to Asia, and some of it is clearly being parked in Hong Kong.
Setting the framework
But let’s give credit where it’s due. Invest Hong Kong, Hong Kong Trade Development Council, Financial Services Development Council, Hong Kong Exchanges and Clearing Limited (HKEX) and the government have been working hard behind the scenes, laying the foundation for this rebound. They’ve spent the last two years engaging with companies, updating listing frameworks and making sure Hong Kong stays competitive. Among recent rule changes is the easing of minimum public offering requirements for large Chinese firms listing in Hong Kong, which takes effect this week. There’s also a new initiative to streamline the listing process for specialist tech and biotech companies, paving the way for more companies in new economy sectors. As a result, among those new listings in Hong Kong in the first half of this year, there were six biotech firms and 12 tech names in areas like AI, robotics and autonomous driving. It’s good to see those efforts finally paying off.
This IPO rebound feels like the result of structural reform, coordinated policy support and persistent market rebuilding. It gives Hong Kong the chance to not only reclaim its role as a global listing hub, but to also emerge stronger and more diversified than before.
We’re also seeing signs that international confidence is returning. In June, Thai coconut water brand IFBH Limited raised US$1.16bn in its Hong Kong debut, according to Bloomberg. It’s a strong signal that global issuers still see value in tapping the city’s capital markets.
Investor demand has clearly returned. June data showed average IPO oversubscription of 700 times across 15 deals, ranging from 21x to as high as 3,400x. The average return from IPO price to August 1st was 31%.
What we’re seeing now is strong local demand, paired with selective international re-engagement. For global investors looking to access top-tier Chinese companies, Hong Kong remains the most practical and trusted gateway. The main drivers are company size and market cap, sector relevance and listing quality. Leading firms like CATL and Midea continue to attract institutional investors. CATL, for example, counts major US investment banks and the Kuwait Investment Authority among its H-share holders.
In terms of sector activity, healthcare, consumer goods and automobiles have led the current wave of listings. These, along with broader tech, are expected to remain focal points as they represent China’s core growth areas and competitive strengths.
It’s all great news, but I really hope we’re not getting ahead of ourselves. I’d like to believe this is solid, lasting growth and not just another short-lived rally. I’m sure a lot of you would remember what happened in 2015. The bull run in China’s markets brought a wave of momentum buying and sky-high valuations, only to be followed by a sharp crash. The CSI 300 dropped nearly 30% in a single quarter, and the HSI wasn’t spared either.
The opportunity beyond IPOs
The IPO story is not just about primary listings in Hong Kong, however. Listed issuers from Europe, the Middle East, and Southeast Asia should use this environment to consider seeking a secondary listing in Hong Kong.
A key reason is that while many international companies already have operations in Asia, they have not leveraged local capital markets. For those with already a primary listing in markets like London, Paris, Frankfurt, Milan or Madrid, there are arguably benefits to a secondary listing in Asia. For those coming to market for the first time, then a dual listing may be the best option.
Listings could open doors to bond issuance and additional equity offerings within Asia. A listing in Hong Kong would enhance visibility and credibility in the region, and could foster more regional banking relationships, which in turn could lead to new business or trading opportunities, especially useful amid global trade tensions.
Ronald Chan is founder and CIO of Chartwell Capital, the independent Hong Kong based investment firm. He is a board member of the Hong Kong Financial Services Development Council (FSDC) and a member of the SFC (HKEC Listing) Committee.
