KPMG: Hong Kong's IPO fundraising amount in the first quarter of this year was HK$17.7 billion, nearly three times higher than the same period last year, ranking fourth globally.

On April 1st, the "China Mainland and Hong Kong IPO Market: Review of the First Quarter of 2025" released by KPMG stated that, benefiting from the success of several large new listings, the total funds raised in the first quarter of Hong Kong IPO reached 17.7 billion Hong Kong dollars, almost three times higher than the same period last year, setting a new high for the first quarter since 2021, and ranking fourth globally in terms of total funds raised. In the first quarter of 2025, there were 283 IPOs globally, raising a total of 28.2 billion US dollars. Compared to the same period in 2024, the total funds raised increased by 4% while the number of listings remained the same. The two major stock exchanges in the United States led the world in terms of total funds raised, accounting for about 30% of the global IPO proceeds. The Tokyo Stock Exchange ranked third due to the completion of the largest IPO so far in 2025. The Hong Kong Stock Exchange ranked fourth. According to Zhu Yayi, Managing Partner of KPMG China's New Economy and Life Sciences industry in Hong Kong, after the "Two Sessions", the China Securities Regulatory Commission proposed a new round of capital market optimization measures aimed at promoting comprehensive investment reform, prioritizing high-quality development and reducing risks. In particular, supporting high-quality technology startups that are not yet profitable to go public will further promote the innovation and development of technology companies in mainland China. The Hong Kong IPO market continued its strong momentum from the second half of 2024 and had a good start in early 2025. The outstanding performance of the IPO in the first quarter of Hong Kong was not only due to a 25% increase in the number of listings but also because six IPOs in the first quarter raised over 1 billion Hong Kong dollars, driving an average transaction size growth of 193%. With the popularity of DeepSeek, the market's interest in mainland Chinese technology companies has significantly increased, playing a key role in overall market liquidity and valuation improvement. However, among the five largest IPOs in the first quarter of 2025 in Hong Kong, three came from the consumer sector, with the largest IPO being the largest tea drink chain brand in mainland China. The growth momentum is also reflected in the number of IPO applications, which has increased to 120 companies, significantly higher than the 86 at the end of 2024. This increase is mainly attributed to 51 companies submitting applications for the first time this quarter, compared to only 24 in the previous quarter. In addition, the "A+H" listing model is also becoming increasingly popular, with about a quarter of the companies applying for listings coming from A-share listed companies. The Hong Kong Stock Exchange recently reviewed the relevant regulatory framework for optimizing IPO pricing processes and the public market, suggesting measures aimed at providing greater flexibility to companies in terms of capital management structure and enhancing liquidity, especially for companies listing through the "A+H" model. In the 2025-26 Financial Budget, the Hong Kong government emphasized its commitment to consolidating Hong Kong's status as an international financial center and proposed a series of policies and measures to support the IPO market, including optimizing approval processes, increasing overseas recognized exchanges, and establishing a specialized "Tech Enterprise Line" to provide consulting and guidance services for technology and biotechnology companies interested in listing in Hong Kong. Liu Dachang, Managing Partner of KPMG China's Hong Kong Capital Markets group, stated that the increase in investor confidence and the recent AI boom are prompting more early-stage mainland Chinese technology companies to consider listing in Hong Kong through the tech company channel. KPMG also noted that some larger A-share listed companies have recently submitted applications for listing in Hong Kong. By focusing on high-growth industries and attracting more "A+H" companies, the Hong Kong IPO market will have a vibrant year ahead.