Transformation, Overseas Expansion, and Policy Incentives Drive Hong Kong IPO Surge

The Hong Kong IPO market has shown strong momentum in 2025. On May 20, CATL debuted on the Hong Kong Stock Exchange, with its H-share price quickly exceeding its A-share value. The company raised HKD 41 billion, marking the largest global IPO this year. Following CATL’s lead, companies like Jiangsu Hengrui and Xiamen Jihong Co Ltd have also completed Hong Kong listings, adding to the market’s upward trend.

Wind data shows that IPO fundraising in Hong Kong has reached HKD 77.6 billion so far in 2025—over seven times the amount raised during the same period in 2024 and nearing 90% of last year’s full-year total. Analysts attribute this surge to favorable policy signals, the growing globalization of Chinese businesses, and regulatory enhancements by the exchange.

In March 2023, the Hong Kong Stock Exchange launched Chapter 18C of the Main Board Listing Rules, allowing pre-revenue or unprofitable specialized tech firms to list. Since mid-2024, companies such as Black Sesame International Holding Ltd, Horizon Robotics, Minieye Technology Co Ltd, Jiangsu Guofu Hydrogen Energy Equipment Co Ltd, Beijing Saimo Technology Co Ltd, and CATL have gone public under this initiative. Others, including New Vision Electronics, Nuobikan Artificial Intelligence Technology, CTCI Group, Insilico Medicine, Seres Automobile, SUZHOU NOVOSENSE MICROELECTRONICS CO.LTD., and Tianyue Semiconductor are currently preparing to list.

To support “A+H” listings, the exchange has adopted a fast-track review process for qualified A-share firms, with approvals targeted within 30 working days. CATL, for example, intends to direct about 90% of its IPO proceeds to its project in Hungary. Jiangsu Hengrui also views its Hong Kong listing as key to its international strategy.

Research by China International Capital Corporation reveals that Foshan Haitian Flavouring & Food Co, Anjoy Foods Group, Zhejiang Sanhua Intelligent Controls Co.,Ltd., SICHUAN BIOKIN PHARMACEUTICAL CO.LTD., and Beijing Health Guard Biotechnology Inc. have filed for Hong Kong listings. Additionally, 18 firms—including Sany and Seres Automobile—have submitted materials to the China Securities Regulatory Commission, while 25 others such as Will Semiconductor and Muyuan Foodstuff have publicly announced H-share listing plans. Altogether, around 50 A-share companies are pursuing listings in Hong Kong, with estimated capital needs between HKD 150 billion and HKD 180 billion.

According to Deloitte China, the Hong Kong market could see around 80 new IPOs this year, with projected fundraising between HKD 130 billion and HKD 150 billion. This wave of listings is expected to inject quality assets into the market and strengthen Hong Kong’s global financial stature.

Dennis Huang, President of Wilson International Capital Limited, notes that despite rising caution from Western investors, Hong Kong continues to serve as a vital link between global capital and Chinese enterprises. As China advances its “dual circulation” strategy, the city’s role in connecting domestic firms with international markets is becoming increasingly important—especially for tech companies seeking to attract foreign investment and expand global reach.