Hong Kong IPOs “Blocked”? Nearly 300 Companies Await Hearings As 2025 Fundraising Tops Global Rankings

The Hong Kong initial public offering market experienced a pronounced surge in 2025, with fundraising volumes surpassing those of other major exchanges even as the backlog of listing applicants continued to expand, creating a notable accumulation of pending cases.

Data compiled through December 17 indicate 298 companies were in the HKEX hearing pipeline, with 28 new filings added in the first half of December alone—substantially more than the 18 additions recorded in the same period in November—highlighting an accelerating queue that has drawn close scrutiny from market participants. Over the year, 102 IPOs completed listings on the exchange, raising HKD 272.476 billion, a year‑on‑year increase of 226.62% and the highest annual total in four years.

The growing queue has prompted concerns about both market overheating and potential quality deterioration in applications. Regulators have issued joint warnings about submission standards, citing strains such as investment‑bank staffing shortages and hastily prepared documentation. Although apprehension persists that heavy primary‑market issuance could siphon liquidity from the secondary market, sell‑side analysis points to a weak positive correlation between primary and secondary market performance, suggesting that short‑term pressures may not overturn the longer‑term industrial and capital‑market dynamics supporting Hong Kong’s listings. The market therefore faces the task of expanding capacity while strengthening risk controls.

Technology and innovation sectors dominate the current pipeline, with software services and hardware equipment representing the largest share of proposed listings. Pharmaceutical and biotechnology companies are also prominent, focusing on innovative therapeutics, oncology and autoimmune disease treatments—areas supported by policy incentives and robust demand. Consumer services and retail account for a significant portion of applicants, where traditional brands are pursuing differentiation and omnichannel strategies to upgrade their market positions. New energy and intelligent manufacturing entrants are likewise visible, with firms targeting electric‑vehicle ecosystems and automotive electronics among the emerging themes. The sectoral mix of applicants aligns with broader global supply‑chain adjustments and an emphasis on innovation‑driven growth.

Sponsorship activity is concentrated among a handful of major underwriters. CITIC Securities (Hong Kong) and CICC Hong Kong lead the sponsor rankings, each backing a substantial number of queued issuers, while Huatai Financial Holdings (Hong Kong) occupies a prominent third position. Other active sponsors include Guotai Junan Financing, CITIC Lyon, Haitong International, CMB International, CCB International, ABC International, CMB Securities (Hong Kong), GF Financing (Hong Kong), Goldman Sachs (Asia), JPMorgan Far East Securities and Morgan Stanley Asia. After accounting for overlaps, certain sponsor groupings together account for a material share of the pipeline.

Regulatory concern over application quality has been formalized through joint communications from the Securities and Futures Commission and the Hong Kong Exchange, which flagged recent instances of substandard filings and non‑compliance. Market participants attribute some of the quality issues to the rapid rebound in deal flow, which has stretched investment‑bank resources and, in some cases, led institutions to accept mandates beyond their operational capacity. The joint regulatory notice underscores the risk of excessive filings and signals that authorities may take measures to better align application volumes with review capacity and quality standards.

Debate continues over the extent to which primary‑market activity drains liquidity from secondary trading. Research from Huatai Securities suggests a weak positive relationship between IPO issuance and secondary‑market performance, noting that companies tend to file when secondary markets are favorable and that major IPOs can attract additional trading interest. Macro factors such as a softer U.S. dollar and lower Hibor rates can simultaneously support both primary and secondary markets, limiting the net “drain” effect of IPO fundraising relative to overall market capitalization and turnover.

On a global basis, Hong Kong led major exchanges in IPO fundraising through early December, with HKEX raising USD 34.3 billion, ahead of the New York Stock Exchange, Nasdaq, India’s National Stock Exchange and the Shanghai Stock Exchange. New‑economy sectors accounted for a large share of capital raised, with industrial engineering, precious metals, automotive, pharmaceuticals and software services among the top fundraising categories. By listing count, pharmaceuticals and biotechnology led the year. The ten largest IPOs of 2025 on HKEX included major issuers such as CATL, Zijin Mining International and Sany Heavy Industry, among others, with individual deal proceeds ranging from tens to hundreds of billions of Hong Kong dollars.

Seventeen companies have already secured hearing approvals, and a broader cohort of issuers continues to progress through the review process. At the same time, the market has seen corporate exits: 27 privatizations, four voluntary withdrawals and 30 delistings were recorded during the year.

Chinese securities firms have been the principal beneficiaries of the underwriting wave, with CICC Hong Kong leading in aggregate funds raised as sponsor and underwriter, followed by CITIC Lyon and CITIC Securities (Hong Kong). The top ten underwriting institutions by funds raised include a mix of domestic and international banks, reflecting the central role of Chinese brokerages in the current issuance cycle.

As Hong Kong’s IPO market expands in scale and scope, the challenge for regulators, sponsors and issuers will be to sustain market momentum while ensuring application quality and preserving secondary‑market stability.