Hong Kong IPO fever is a win-win for companies and investors. Goldman Sachs says global investors are increasing their participation.

According to Goldman Sachs data, as of this year so far, 51 companies have been listed on the Hong Kong Stock Exchange, raising a total of $16 billion. With factors such as the rebound in the stock market, a slowdown in mainland IPOs, and a friendly regulatory environment driving this trend, over 200 companies are currently in line waiting to go public. Global investors are also returning, with hedge funds, mutual funds, sovereign wealth funds, and retail investors all being attracted to the Hong Kong Exchange. This is a win-win situation for both the companies listed in Hong Kong and investors. For companies, if included in the Stock Connect program, they are expected to benefit from southbound funds, while for investors, it provides an opportunity for diversification in the face of uncertainty in the U.S. market. Goldman Sachs strategists Si Fu, Liu Jinjin, Timothy Moe, and Kevin Wang wrote in a report that this year, the amount raised in Hong Kong's IPO market has exceeded $10 billion, reaching the average annual level from 2022 to 2024. From a strategic perspective, regulatory agencies are enhancing the attractiveness of Hong Kong as a global listing destination, especially by encouraging A-share companies and U.S. depositary receipt companies to achieve dual listings in Hong Kong.