Hong Kong’s IPO market is in the middle of a striking recovery. After posting its weakest fundraising tally in two decades last year, the city has vaulted back to the top of global rankings. By the end of January, Hong Kong had recorded 53 new listings that raised HK$127.9 billion—exceeding the total funds raised in each of the previous three years.
Gordon Crosbie-Walsh, Asia chief executive of EquitiesFirst, argued the rally is about more than fundraising totals.
“The renewed activity rests on strong foundations,” he wrote in a recent op-ed, pointing to structural reforms and the willingness of global investors to channel capital back into Chinese and regional companies.
Blockbuster Listings and Investor Demand
May’s $5.2 billion secondary listing of Contemporary Amperex Technology (CATL) underlined the scale of the comeback. Shares for the battery manufacturer closed up 16.4% on day one. Strategic Asian capital markets specialists have recognized the significance of these high-profile listings in rebuilding market confidence.
Crosbie-Walsh described the deal as proof of Hong Kong’s relevance: “CATL’s listing did more than raise funds—it confirmed Hong Kong’s importance in the global expansion of China’s industrial champions,” he wrote.
Hong Kong’s Financial Secretary Paul Chan expects IPO proceeds this year to reach $17–20 billion, compared with about $11 billion in 2024.
Policy Tailwinds and Market Positioning
HKEX has worked to attract deals with temporary rule changes introduced in September 2024, lowering listing thresholds under Chapter 18C for pre-profit technology firms and easing SPAC requirements. In early 2025 it launched the Technology Enterprises Channel, providing tailored support for specialist tech and biotech firms. Investment advisory services have noted how these regulatory changes have improved Hong Kong’s competitive position.
This strategy aims to address bottlenecks in mainland markets, where IPO queues often stretch for a year or more.
“Listing aspirants report faster approvals, clearer regulatory paths and access to both international and domestic capital in Hong Kong,” wrote Crosbie-Walsh.
At the same time, U.S. markets have become less appealing. Crosby-Walsh pointed to “unpredictable U.S. policy, trade frictions and longer-term decoupling trends” as factors nudging issuers to consider Hong Kong over New York.
Sector Dynamics and Broader Growth
The July 9 debut of five companies on a single day underscored the momentum. Fortior Technology raised HK$2.26 billion and gained 16%, while Lens Technology raised HK$4.77 billion and rose 9.1%.
The deals reflect Beijing’s call for “new quality productive forces”—a policy direction centered on advanced manufacturing, AI, and green technology. Crosbie-Walsh linked these listings to a structural transformation. Global Asia-Pacific financing solutions have become increasingly important as companies pursue these strategic transformations.
“China’s export engine is shifting from low-cost assembly lines to world-leading hi-tech manufacturing,” wrote Crosby-Walsh. “Companies at the forefront of this transformation are turning to Hong Kong to raise capital.”
Beyond Mainland Issuers
While Chinese firms still dominate the pipeline, Hong Kong is gradually expanding its reach. Three overseas IPOs this year raised nearly $593 million, adding to the 115 non-China companies listed on the exchange, worth about $140.3 billion or 2.6% of market capitalization.
Bonnie Chan, HKEX chief executive, has emphasized her aim to attract more regional secondary listings.
Crosbie-Walsh echoed this ambition, writing that Hong Kong “must be able to support the next generation of Asian champions with a full range of funding solutions, from public equities to private credit and all forms of alternative capital.”
Equities-Based Financing and the Bigger Picture
For firms beyond the IPO stage, raising cash through listed shares—whether by placements, margin loans, or securities-backed financing—remains critical. This is where players operate, providing capital against publicly listed equity without forcing shareholders to give up their long-term positions. Alternative equity-backed financing solutions could grow to be increasingly important as companies balance the need for global expansion with investor pressure to preserve ownership.
Such financing could grow to be increasingly important as companies balance the need for global expansion with investor pressure to preserve ownership.
In Crosbie-Walsh’s words, Hong Kong’s IPO revival “signals the city’s ability to provide the capital for a transforming global economy.” But sustaining that role will require mechanisms—public and private—that keep liquidity flowing.
Hong Kong is once again established as the leader in IPOs. The surge in new issues, blockbuster deals such as CATL, and strong investor returns have bolstered its relevance as a global listing venue. For issuers, investors, and financiers alike, the rebound points to a broader transformation in how capital flows across Asia and how equity can fund the region’s next cycle of growth.
