Over 100 New Listings In Hong Kong This Year As Total Fundraising Tops HKD 270 Billion, Eighteen “A+H” Dual Listings

On December 11, the Hong Kong IPO market marked its 100th listing of the year with the debut of JD Industrial（07618.HK）, bringing the total number of new Hong Kong listings for the year past the century mark. Standing at this milestone, the market’s momentum over the year is evident: one hundred new issues raised a combined HKD 270.086 billion, marking the first time in four years that annual fundraising on the Hong Kong Stock Exchange has exceeded HKD 200 billion and placing the exchange at the top globally for annual capital raised.

Across 2025, Hong Kong emerged as a primary venue for large IPOs, accounting for four of the world’s ten largest listings. Contemporary Amperex Technology led the local market with HKD 41.006 billion in proceeds, becoming the year’s largest Hong Kong IPO and the largest global IPO of the year. In addition to that headline transaction, the market produced seven other listings that each raised more than HKD 10 billion, underscoring the concentration of large deals that drove the year’s fundraising performance.

The surge of A‑share companies listing in Hong Kong contributed materially to the increase in capital raised. Eighteen A‑share issuers completed “A+H” listings during the year, representing a significant incremental source of supply for the exchange. Structurally, the market’s activity has been powered by new‑consumption names and hard‑technology leaders, sectors that benefited from policy support and investor interest.

Despite the headline success in fundraising, the Hong Kong IPO market faces emerging challenges. Since November, a renewed wave of first‑day declines has appeared, concerns about listing quality have been raised, investment banking capacity has been stretched, and more than 300 companies remain in various stages of the listing queue—issues that together signal tests ahead for the market.

JD Industrial’s listing on December 11 closed flat at HKD 14.10 after opening down 7.8%, giving the company a market capitalization of HKD 37.89 billion on its first trading day. Over the full year, the number of Hong Kong IPOs rose sharply from 64 in the prior year to more than 100, while total proceeds reached HKD 270.86 billion, the second‑highest annual total in five years. Ernst & Young projects that the Hong Kong Stock Exchange will top global exchanges in 2025 with approximately USD 36 billion raised, well ahead of the New York Stock Exchange’s expected USD 20.5 billion.

Large transactions were the primary driver of the fundraising total. In addition to Contemporary Amperex Technology, other major listings included Zijin Mining International, Sany Heavy Industry, Seres, Jiangsu Hengrui Medicine, Sanhua Intelligent Controls, Haitian Flavouring and Food, and Chery Automobile. Several of these deals also ranked among the world’s largest IPOs of the year, reflecting Hong Kong’s role as a focal point for sizeable new issues. Investor demand remained robust: of the 100 new listings, 75 closed higher on their first trading day while 25 declined, producing a first‑day decline rate of 25 percent, the lowest in five years. Average oversubscription multiples reached 1,544, up 3.3 times year‑on‑year and a five‑year high.

A‑share issuers accounted for a substantial share of the year’s fundraising. Among the eight Hong Kong IPOs that raised more than HKD 10 billion, six were A‑share companies listing in Hong Kong, collectively raising HKD 103.32 billion, or roughly 38.25 percent of the year’s total. In aggregate, the 18 A‑share companies that listed in Hong Kong raised approximately HKD 138.701 billion, representing about 51.35 percent of total proceeds for the year. Policy measures such as fast‑track channels for A‑share companies and supportive guidance from mainland regulators have materially improved listing efficiency and strengthened Hong Kong’s appeal to mainland issuers.

The market’s sector composition highlights the twin engines of new consumption and hard technology. Policy support for technology listings, including the launch of a dedicated channel for specialized technology and biotech companies, helped drive strong activity in healthcare and information technology. Of the year’s 100 new listings, 24 were classified in healthcare and 18 in information technology, with notable new entrants including Pony.ai and Cambridge Technology. At the same time, new‑style consumer brands and small‑appliance manufacturers also found receptive demand, with 20 discretionary consumer companies and 11 essential consumer companies completing listings.

Looking ahead, market participants expect Hong Kong’s IPO market to remain active in 2026, with growth likely to be steadier and more structurally focused. The “A+H” listing model is expected to remain an important source of supply, while returning U.S.-listed Chinese companies and specialized technology firms in areas such as artificial intelligence and biomedicine are anticipated to contribute meaningfully to future issuance.

At the same time, several risks warrant attention. First‑day break rates have risen in recent months: in November, five of 11 new listings fell on debut (a 45.45 percent break rate), and in early December three of nine new listings fell (about 33.33 percent), both well above the year’s average. Market participants attribute part of this trend to valuation anchors that reflect A‑share levels or historical highs, which may not align with Hong Kong investors’ valuation preferences centered on cash‑flow discounting and dividend returns. Heavy reliance on southbound capital has also created concentration risk, with short‑term profit‑taking capable of triggering clustered breakouts.

Regulators have flagged concerns about declining application quality, citing instances of vague business descriptions, promotional language that overstates market position, inadequate sponsor responses to regulatory queries, and execution lapses during the offering process. Talent shortages in investment banking have further strained execution capacity, as experienced staff are stretched across multiple deals and junior personnel shoulder a growing share of foundational work.

More than 300 companies remain in the Hong Kong listing pipeline, and the accumulation of new filings will test market liquidity and underwriting capacity. Analysts also note that the expiration of lock‑up periods in 2026 could produce secondary issuance and shareholder sell‑downs that add further supply to the market.

The revival of Hong Kong’s IPO market reflects the broader dynamics of China’s capital‑market opening and global capital reallocation, but sustaining this momentum will require balancing market vitality with risk management. Institutional improvements, stronger quality controls and ecosystem optimization will be essential to ensure that the market’s recovery is durable and that Hong Kong’s role as an international financial center continues to deepen.