Hong Kong’s initial public offering ( IPO ) market is seeing a sturdy rebound after years of decline, with proceeds in the first five months of 2025 exceeding HK$77 billion ( US$9.8 billion ), a 709% surge compared to the same period last year – that could soon surpass the HK$87 billion recorded in 2024.

Notably, IPO deals closed in May reached the largest value since March 2021, among which the CATL’s HK$41 billion offering was the largest IPO in Hong Kong and the world year-to-date.

The pipeline for the rest of the year remains strong. Data from the Hong Kong Exchanges and Clearing shows that there are 21 approved IPO submissions pending for listing and 146 IPO applications are under processing as of the end of May. PwC estimates Hong Kong will complete around 70 to 80 IPOs in 2025, raising approximately HK$130-160 billion.

Chinese issuers account for a sizeable share of those on the waiting list. Many of them are A-share companies opting for a secondary listing in Hong Kong.

Given the geopolitical shifts, Hong Kong is increasingly seen as an ideal place for fundraising because of its sound financial infrastructure and global connectivity. Prominent A-share companies see Hong Kong as a gateway to access international capital and extend global influence.

At least 25 A-share companies have announced plans to list as H-shares this year. These include Haitian Flavouring, a famous producer and seller of food seasonings; Muyuan Foods, a leading pork distributor; and Seres Group, an electric vehicle maker and partner of telecom giant Huawei. Haitian Flavouring has already opened subscription to investors, raising HK$10 billion, and will start trading on HKEX on June 19th.

Sector-wise, consumer goods and high-tech industrial companies are expected to drive the Hong Kong IPO pipeline for the second half of the year. The former is consistent with China’s near-term strategy of boosting consumption, while the latter is aligned with the country’s long-term industrial ambitions and technological innovation.

The strong liquidity in the Hong Kong IPO market is also spurring the Stock Connect programmes, with the turnover of northbound and southbound trading surging 16% and 145%, respectively, between June 2024 and May 2025.