China and Hong Kong Command One-Third of Global IPO Proceeds in H1 2025

Behind the headline share is a mix of dynamics. Onshore, China’s exchanges continued to favor listings tied to strategic priorities - advanced manufacturing, energy transition supply chains and national data infrastructure, supporting deal flow even as secondary-market conditions fluctuated. Hong Kong, for its part, benefited from a pipeline of sizeable issuances and follow-ons from Chinese corporates seeking international investor bases without the regulatory complexity of a U.S. listing. Valuations remained disciplined, but bookbuilding was helped by local long-only demand and the return of selective global funds.

Sector composition also mattered. Industrial, renewables and next-gen auto ecosystem names found receptive buyers, as did cash-generative services firms with clear profitability paths. Issuers prized certainty of execution, leaning into markets where regulatory timetables were predictable and disclosure standards familiar to domestic management teams. That combination - policy visibility, investor appetite for capex-heavy stories, and underwriting depth, helped China and Hong Kong punch above their weight on proceeds even with fewer blockbuster tech debuts than prior cycles.

Looking to the second half, the opportunity set is constructive but not without risk. Macro softness at home and episodic risk-off spells could challenge aftermarket performance, and Hong Kong’s persistent valuation discount versus U.S. peers remains a hurdle for growthier names. Still, if rates continue to stabilize, capital markets desks expect a busy calendar of industrials, energy transition infrastructure, and selective consumer names. For would-be issuers, the lesson from the first half is clear: align sector story with domestic policy priorities, show operating cash discipline, and pick a venue that offers the cleanest path to completion.