China IPOs Debut Strongly in Hong Kong, Raising $900 Million to End a Record Year

At the end of 2025, six Chinese companies raised around HK$6.99 billion ($900 million) in Hong Kong, with most shares opening above their offer prices. This strong debut reflected growing confidence in China’s tech sector and Hong Kong’s role as a global financial hub.

Key Highlights of Recent IPOs

• Strong debuts: Six companies, including an AI drug firm and software brands, opened above offer prices.
• Fundraising boost: IPOs helped Hong Kong raise $75 billion in 2025, triple 2024’s total.
• More deals: New listings added HK$9 billion in potential funds, including Zhipu AI and Iluvatar CoreX.

Record Year for Hong Kong IPOs

• Strong fundraising: 2025 was a record year for China IPOs in Hong Kong, with the highest volumes since 2021.
• Global top spot: Hong Kong’s IPO market outpaced most exchanges, reclaiming the top global ranking for the first time since 2019.
• Key sectors: EV batteries, digital tech, and consumption drove listings; CATL completed one of the largest deals.
• High activity: Over 100 IPOs in 2025 marked a strong rebound from 2022–23, showing investor confidence in Chinese growth.

Factors Behind Strong IPO Performance

• Liquidity & market depth: Investors have more cash to deploy, and Hong Kong offers deep domestic and international funds.
• Policy support: New regulations made it easier for tech and biotech firms to list through special channels.
• Global investor interest: Foreign investors are eager to access China’s innovation sectors, with Hong Kong acting as a bridge.
• Tech & innovation focus: AI, biotech, and semiconductor companies led the surge, with many IPOs tied to emerging, next-generation growth industries.

Challenges and Risks for Investors

• Regulatory uncertainty: Political tensions and changing rules can affect valuations, especially for tech listings.
• Bubble concerns: High valuations in AI and tech may be overstretched; investors should evaluate fundamentals.
• Short-term volatility: IPO debut gains don’t guarantee long-term returns; market swings can be sharp.

Outlook for 2026 and Beyond

• Strong IPO pipeline: Over 300 companies have pending applications with HKEX, showing continued momentum.
• Key sectors: AI, biotech, and clean energy are expected to lead new listings.
• Global capital attraction: Hong Kong’s market is likely to keep drawing international investors seeking growth opportunities.

Conclusion

2025 marked a big step for China’s IPOs in Hong Kong. Raising $900 million in a single day was a strong final note to a historic year. Hong Kong’s capital market has regained global prominence and remains a key launching pad for Chinese innovation. As we move into 2026, the strength of this IPO wave shows no sign of fading.

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Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.