After several challenging years marred by sluggish deal flow, Hong Kong has staged a dynamic comeback in the initial public offerings (IPO) arena. According to data released by the London Stock Exchange Group (LSEG) on June 30, 2025, the Hong Kong Stock Exchange (HKEX) main board brokered 42 IPOs in the first half of the year, raising a total of US$13.5 billion. This marks an eightfold increase over the same period in 2024 and places Hong Kong ahead of both Nasdaq and the New York Stock Exchange (NYSE), which raised US$8.85 billion and US$7.52 billion respectively.

This resurgence marks Hong Kong’s return to the pinnacle of global capital raising, topping the league tables for IPO proceeds for the first time since 2019. The city had previously slipped down the global rankings amid macroeconomic headwinds and the lingering impact of pandemic restrictions, but now finds itself back in favor among both international and regional investors.

Surge Fueled by Global Investor Inflows and Robust Returns

Kenneth Ho Shiu-pong, head of equity capital markets at Haitong International, attributes the sharp rebound to increased international participation and a positive re-rating of Asian equities. “The IPO market in Hong Kong has continued its upward trajectory since January, driven in part by significant players like DeepSeek, which encouraged worldwide investors to re-evaluate Asian stocks,” Ho explained. “A key factor sustaining this high level of activity is the robust post-listing performance, with average IPO investors enjoying returns exceeding 30 percent.”

The renewed enthusiasm has drawn significant Southbound inflows from mainland Chinese investors via the Stock Connect scheme. Additionally, reforms in Hong Kong’s listing regime, including new chapters for specialist technology and biotech firms, have broadened the bourse’s appeal and pipeline.

Hong Kong Leads Global IPO Table for H1 2025

Compared to 2024, Hong Kong jumped an impressive 12 spots in the ranking, reversing the declines seen through the pandemic and economic recovery period. While deal volume (42) was lower than Nasdaq (72) and India’s exchanges (72 and 64), the funds raised in Hong Kong far surpassed its rivals, underscoring the scale of the listings and the bourse’s global reach.

Key Listings and Market Dynamics

One of the defining moments of Hong Kong’s 2025 IPO revival was the highly anticipated listing of Mixue Group, a popular Chinese beverage chain, which struck the ceremonial gong in March. The deal set a positive tone for subsequent listings and was met with strong demand from global institutional and retail investors. Other notable debuts included fintech, healthcare, and new economy firms, reflecting the city’s ambition to solidify its position as a hub for high-growth sectors.

The competitive landscape has been impacted by stricter regulatory scrutiny in the United States, which has led more China-based firms to favor Hong Kong as their listing venue. The city’s adoption of new listing policies—such as accommodating companies with different share structures and red-chip listings—has further aligned HKEX with the evolving needs of international issuers.

Beyond headline numbers, the quality of post-listing performance in Hong Kong has attracted significant media attention, with aftermarket gains averaging above 30% for new IPO investors. This has contributed to a virtuous cycle of institutional interest and robust pipeline activity heading into the second half of the year.

Outlook for the Rest of 2025

Buoyed by a surge in international capital flows, analysts expect Hong Kong to sustain its leading position in global equity capital markets through the rest of 2025. According to Refinitiv, aggregate global IPO proceeds reached nearly US$50 billion in H1 2025, with Hong Kong responsible for more than a quarter of the total. Experts anticipate further tailwinds as monetary policy stabilizes and optimism builds around Asia’s economic rebound.

The HKEX has outlined plans to deepen collaboration with key Mainland Chinese exchanges, and to further diversify its listed company base to include more ‘new economy’ and technology innovators. Meanwhile, the IPO pipeline for the second half is robust, with several large-scale debuts—including major green energy and consumer tech companies—expected to test investor appetite.

While potential risks remain, such as geopolitical tensions, monetary tightening, and ongoing competition from other regional exchanges, Hong Kong’s IPO market has showcased a resilience and adaptability that positions it to remain a dominant force in the global financial ecosystem.

“This momentum is expected to drive further cross-border investment flows and cement Hong Kong’s reputation as Asia’s premier international financial center,” noted a spokesperson for the Hong Kong Exchanges and Clearing (HKEX).

As the city looks ahead, all eyes will be on how Hong Kong can leverage this momentum to foster sustainable growth and innovation in its capital markets, ensuring long-term competitiveness on the global stage.