Hong Kong - world leader in raising capital through IPOs

The Hong Kong Stock Exchange recorded a 33% increase in initial public offering (IPO) listings in the first half of 2025, compared to the same period of the previous year, making it the third-busiest stock market globally by number of transactions and also the world leader in raising funds through IPOs, informs macaonews.org.

Citing data from accounting firm Ernst & Young, thestandard.com.hk writes that the number of transactions on the Hong Kong market was about 40 during the said period, while proceeds from IPOs totaled 108.7 billion Hong Kong dollars (13.8 billion US dollars). The amount represents a more than seven-fold increase from the first six months of 2024 and represents 24% of global IPO proceeds - putting Hong Kong ahead of Nasdaq and the New York Stock Exchange (NYSE), which ranked second and third, respectively.

Bloomberg describes the Hong Kong market as in a "frenzy” after being "abandoned by investors and companies for many years.” Behind the action are Chinese companies looking to access global funds, while attracting domestic investors, helped by favorable regulatory reviews in Hong Kong. Investors are also increasingly looking to diversify outside the US due to hostile trade and geopolitical policies from Washington.

One such company is the world's largest battery maker, Contemporary Amperex Technology, which debuted on the Hong Kong Stock Exchange in May. Its listing, worth HK$41 billion, was the largest such deal so far in 2025. Other major companies that followed suit include mainland China's second-largest ride-sharing operator CaoCao; Tesla parts supplier Zhejiang Sanhua Intelligent Controls; soy sauce giant Foshan Haitian Flavouring & Food; automaker Seres; energy drink maker Eastroc Beverage; and robotics firm Estun Automation.

Other deterrents to listing in the U.S. have been the time zone difference and capital controls imposed by Beijing, Bloomberg notes.

Mainland Chinese residents face limitations on the amount of yuan they can convert into foreign currency, but eligible investors can circumvent this restriction to access companies included in the Hong Kong market's Hang Seng Composite Index - and others - using a cross-border channel known as Stock Connect.

The Hong Kong Stock Exchange is also hoping to attract companies already listed in Southeast Asia and the Middle East, according to chief executive Bonnie Chan, quoted by Bloomberg. "We are now focusing more on companies that are already listed in another market but may have outgrown their domestic market,” Chan said.