Hong Kong IPO Boom 2025: Why Global Companies Are Choosing Hong Kong Over NYSE and NASDAQ

 Hong Kong IPO Boom 2025: Why Global Companies Are Choosing Hong Kong Over NYSE and NASDAQ

After several years of muted activity, Hong Kong’s IPO market delivered a dramatic comeback in 2025, reclaiming its position as the world’s leading listing destination. For the first time in four years, Hong Kong surpassed both the New York Stock Exchange and NASDAQ in total funds raised, signalling a major shift in global capital market preferences and reinforcing Hong Kong’s growing appeal among international companies.

This resurgence reflects renewed investor confidence, strong regulatory reforms, and the city’s strategic position as the gateway between China and global capital markets.

Hong Kong Regains Its Position as the World’s Top IPO Hub

By December 19, 2025, the Hong Kong Stock Exchange had raised HK$274.6 billion (approximately USD 35.3 billion) from 106 new listings. Four of these ranked among the world’s top ten IPOs of the year. This marked a 218% increase compared to 2024’s total fundraising of HK$88.1 billion and represented the first time in four years that Hong Kong crossed the HK$200 billion milestone.

Momentum accelerated rapidly throughout the year. In the first half alone, IPOs raised HK$107.1 billion nearly seven times the amount recorded during the same period in 2024. This growth reflected not just higher volumes but also larger deal sizes and improved listing quality, highlighting the market’s renewed depth and resilience.

Beyond IPOs, companies listed on HKEX raised an additional USD 66 billion through follow-on offerings. Average daily market turnover during the first eleven months of 2025 reached HK$230.7 billion, a 43% year-on-year increase, confirming robust liquidity in the secondary market.

The Mega-Deal Effect: CATL Sets the Tone

The defining transaction of the year came in May when Contemporary Amperex Technology Co. Limited (CATL), the world’s largest electric vehicle battery manufacturer, completed its Hong Kong IPO. The offering raised HK$35.7 billion (USD 4.6 billion), later increasing to HK$41 billion (USD 5.2 billion) after the greenshoe option was exercised, making it the largest IPO globally in 2025.

What made CATL’s listing especially significant was the pricing dynamic. Its H-shares were offered at a premium to its mainland A-shares a rare occurrence that demonstrated strong international investor demand and confidence in Hong Kong’s price discovery framework. On its debut, the stock surged 16%, opening at HK$296 compared to its IPO price of HK$263.

Despite geopolitical challenges, including placement on a Pentagon blacklist and pressure on US banks to withdraw from the deal, major global institutions such as JPMorgan Chase and Bank of America stayed committed. Cornerstone investors included Sinopec, Kuwait Investment Authority, Hillhouse Capital, UBS, and Royal Bank of Canada, underscoring international trust in Hong Kong’s market infrastructure.

CATL was not alone in delivering large-scale listings. The top ten IPOs collectively raised HK$154.7 billion, accounting for more than half of total fundraising. Eight deals exceeded HK$10 billion, including offerings by Jiangsu Hengrui Pharmaceuticals, Foshan Haitian Flavouring and Food, and Zhejiang Sanhua Intelligent Controls together representing four of the world’s ten largest IPOs in 2025.

Rapid Growth of A+H Listings

One of the most influential developments of 2025 was the surge in A+H listings, where companies already listed on mainland China’s A-share markets sought secondary listings in Hong Kong to access international capital. Nineteen such listings accounted for approximately half of total IPO proceeds during the year.

This structure allows mainland companies to retain their domestic investor base while expanding access to offshore funding, diversified capital pools, and foreign currency financing. In the first half of 2025 alone, eight A-to-H IPOs raised approximately USD 10.1 billion.

For issuers, the dual-market approach offers enhanced valuation stability and liquidity. For global investors, Hong Kong H-shares provide transparent disclosure standards, internationally recognised regulatory oversight, and easier access compared to navigating mainland markets directly.

Technology and Innovation Drive Regulatory Reform

Hong Kong’s regulatory evolution played a central role in revitalising its IPO market. The Stock Exchange implemented several reforms designed to attract technology, biotech, and innovation-driven companies.

The Technology Enterprises Channel (TECH), launched in May 2025, created a dedicated pathway for specialist technology firms. This framework offers confidential filing options, earlier regulatory engagement, and tailored listing criteria for businesses in artificial intelligence, robotics, advanced manufacturing, and deep technology.

Chapter 18A for biotech listings continued to gain traction, with fourteen biotech companies going public under this framework in 2025, compared to just four in 2024. This regime allows pre-revenue and pre-profit biotech firms to list based on their research pipelines and commercial potential rather than traditional financial metrics. In November 2025, HKEX further strengthened the sector by launching Hang Seng Biotech Index Futures, providing targeted risk management tools.

Chapter 18C, which supports specialist technology companies, completed Hong Kong’s innovation-friendly listing ecosystem. Since the introduction of these frameworks, 88 biotech and specialist technology firms have listed on HKEX, establishing Hong Kong as Asia’s premier hub for innovation-driven capital formation.

The “DeepSeek Moment” and the Tech Market Revival

Global investor sentiment towards Hong Kong rebounded strongly in 2025, driven in part by the so-called “DeepSeek moment.” The launch of DeepSeek’s open-source artificial intelligence model early in the year reignited enthusiasm for Chinese technology stocks, contributing to renewed demand for tech-focused IPOs.

This resurgence, combined with Hong Kong’s strategic position as the primary offshore gateway for mainland Chinese enterprises, created favourable conditions for listings. Investors who had retreated during regulatory uncertainty between 2021 and 2023 returned with renewed conviction, seeking exposure to China’s evolving technology ecosystem through Hong Kong’s transparent and regulated capital markets.

Why Companies Prefer Hong Kong Over US Exchanges

Several structural advantages explain why companies particularly Chinese enterprises are increasingly choosing Hong Kong over traditional US venues such as NYSE and NASDAQ.

Regulatory clarity and policy support stand out as primary factors. Listing rules have been refined to accommodate different business models, streamline approval timelines, and enhance market transparency. In August 2025, HKEX introduced new IPO pricing and allocation rules, including an increased clawback cap of 35% and lock-in mechanisms that significantly improved subscription efficiency and investor participation.

Geopolitical considerations also play a growing role. Chinese companies face heightened scrutiny and delisting risks in the United States due to regulatory friction between Washington and Beijing. Hong Kong provides access to international capital without exposure to US geopolitical constraints. Even companies such as CATL, despite facing US government restrictions, successfully raised billions through Hong Kong.

Valuation outcomes and liquidity metrics further reinforce Hong Kong’s attractiveness. Following market reforms, average first-day IPO returns climbed to 38%, the highest in five years, while underpricing fell to 24%, reflecting stronger price discovery and investor demand.

In addition, Stock Connect programmes linking Hong Kong with Shanghai and Shenzhen exchanges expanded daily turnover by 68% in 2025, creating deeper cross-border liquidity pools and seamless capital flows for Hong Kong-listed companies.

What This Means for Entrepreneurs and Growth Companies

Hong Kong’s IPO boom in 2025 was not limited to mega-cap issuers. The market welcomed companies across diverse sectors, including retail and consumer goods (34% of listings), industrials and materials (23%), and healthcare (23%). This diversification demonstrates that Hong Kong offers viable listing pathways for companies of varying sizes and growth stages.

For entrepreneurs building international businesses particularly those with Asia-Pacific operations or exposure to mainland China incorporating in Hong Kong with a long-term public listing strategy has become increasingly attractive. Industry forecasts project 90 to 100 IPOs in 2025, with total fundraising expected to exceed HK$200 billion, indicating sustained momentum rather than a temporary rebound.

Looking ahead, the outlook for 2026 remains strong. Market participants anticipate fundraising of at least HK$300 billion, driven by continued policy support, expanding liquidity, and a growing pipeline of issuers across traditional and emerging sectors.

YKG Global supports companies throughout their Hong Kong journey, from incorporation and compliance management to regulatory advisory and capital market readiness. With deep expertise in corporate structuring and regulatory navigation, YKG Global helps businesses position themselves for long-term success within Asia’s leading financial hub.

Hong Kong’s transformation from a subdued IPO market to the world’s top listing destination within a single year highlights the city’s resilience, adaptability, and enduring strength as an international financial centre. Regulatory reforms, geopolitical repositioning, technological innovation, and deep capital pools have combined to create an environment where companies can access global capital while maintaining operational flexibility.

For businesses evaluating incorporation jurisdictions or long-term listing strategies, Hong Kong’s 2025 performance provides compelling evidence of its position as Asia’s foremost hub for ambitious companies seeking international growth and global visibility. This IPO resurgence is not merely about fundraising volumes it represents renewed confidence in Hong Kong’s unique role connecting Chinese enterprise with global investment, innovation with capital, and ambition with opportunity.