Global Tech Wave Reshapes Hong Kong Market as Emerging Sectors Drive Growth

In the first half of 2025, Hong Kong’s equity market, a vital conduit between mainland China and international capital, demonstrated a clear shift toward emerging sector leadership. Amid a complex macro backdrop, the convergence of global technological disruption and domestic consumption upgrades positioned technology, consumer, and pharmaceutical industries as the primary engines of market-wide performance.

Major indices reflected this momentum. The Hang Seng Index rose 20%, marking its strongest half-year performance in over three years. The Hang Seng Tech Index gained 18.68%, outperforming global tech benchmarks, while the China Enterprises Index climbed 19.05%, largely fueled by state-owned enterprises in emerging sectors.
This rally was underpinned by two key forces: a revaluation of Chinese assets driven by AI enthusiasm and a net southbound capital inflow totaling HKD 731.193 billion, creating a powerful blend of domestic and international liquidity.

From a corporate earnings perspective, high-growth emerging industries helped offset pressure in traditional sectors, reinforcing overall profitability. Technology, consumer, and healthcare stood out as the most dynamic contributors.

Technology led the charge, with AI, e-commerce, and hardware all delivering robust gains. As large model technologies transitioned from development to deployment, Hong Kong-listed AI firms saw transformative growth. SenseTime-W reported RMB 1.74 billion in first-half revenue, up 21% year-on-year, with generative AI contributing RMB 1.05 billion, a 256% surge. Tencent Holdings, leveraging AI integration across its existing platforms, posted RMB 364.53 billion in revenue, up 14%.

In hardware, domestic innovation broke foreign monopolies. Semiconductor Manufacturing International Corporation recorded USD 4.46 billion in revenue, up 23%, and RMB 2.3 billion in net profit attributable to shareholders, up 39.8%. Its 14nm FinFET process entered client onboarding, with utilization rates steadily improving.

E-commerce rebounded strongly. Pinduoduo, JD.com, and Meituan all posted double-digit profit growth. Meituan’s revenue reached RMB 155.5 billion, up 22%, with net profit at RMB 16.7 billion, up 107%. Pinduoduo, driven by globalization and agricultural product distribution, reported RMB 183.9 billion in revenue, up 105%, and RMB 60 billion in net profit, up 182%.

Consumer brands also delivered standout results. Pop Mart, Mixue Group, and Lao Pu Gold captured market attention. Pop Mart’s IP collaborations and immersive retail experiences resonated with younger consumers, generating RMB 13.88 billion in revenue, up 204.4%, and RMB 4.71 billion in adjusted net profit, up 362.8%. Mixue Group expanded aggressively into lower-tier markets, reporting RMB 14.87 billion in revenue, up 39.3%, and RMB 2.72 billion in net profit, up 44.1%. Lao Pu Gold combined traditional craftsmanship with luxury branding, achieving RMB 12.354 billion in revenue, up 251.0%, and RMB 2.268 billion in profit, up 285.8%.

Healthcare benefited from both regulatory tailwinds and global expansion. Innovative drugs and medical devices emerged as dual growth pillars. With streamlined domestic approvals, Hong Kong-listed biotech firms entered a harvest phase. ImmuneOnco Biopharma advanced its ADC pipeline across multiple targets including HER2 and B7-H3. Its lead candidate DB-1303 entered global multicenter trials and is expected to seek FDA accelerated approval in late 2025.

Medical device makers expanded internationally. Mindray Medical’s overseas revenue reached RMB 8.332 billion, accounting for half of total revenue, with strong growth in developing markets. Its product lines in monitoring, anesthesia, ventilation, defibrillation, hematology, and ultrasound maintained top-three global market share positions.

Emerging sectors also dominated IPO activity, reshaping market dynamics. In the first half of 2025, 42 companies listed on the Hong Kong Stock Exchange, raising HKD 107 billion—leading global capital markets. Technology, consumer, and healthcare firms represented 75% of listings and over 80% of total fundraising.

Newly listed firms are actively reshaping industry performance. Contemporary Amperex Technology’s listing boosted upstream lithium orders for suppliers like Tianqi Lithium and lowered battery costs for downstream EV makers like BYD, creating a ripple effect across the supply chain. Mixue Group expanded its store count from 15,000 to 53,000 post-listing, intensifying price competition in the tea beverage sector and accelerating the industry’s shift toward value-driven consumption.

As of June’s end, over 200 companies were queued for IPOs, with emerging sectors still dominant. Biotech, healthcare, AI, IT, and telecom accounted for over 60% of pending listings. The robotics sector saw 12 companies file IPO applications, including startups like LeMotion Robotics, Woan Robotics, Stand Robotics, and SEER Intelligence, alongside A-share veterans like Estun and Zhaowei Machinery. In healthcare, 39 companies were in the IPO pipeline, with 10 biopharma firms successfully listed in the first half—compared to just 12 for all of last year—signaling a clear rebound.

Brokerage and research institutions forecast structural growth in emerging sectors for the second half of 2025. Technology will benefit from accelerated AI commercialization, with large model applications like Deep Seek expanding into gaming, advertising, and healthcare. Semiconductor localization will further support valuation recovery in the Hang Seng Tech Index. Consumer sectors will focus on “self-pleasure” economics, with niche categories like new tea and collectibles continuing to expand. Healthcare will be driven by overseas expansion of innovative drugs, with ADC and bispecific breakthroughs fueling BD activity and pipeline data releases potentially catalyzing valuation gains.

In sum, Hong Kong’s emerging sectors delivered a strong first-half performance, powered by innovation and evolving demand. As global tech transformation and domestic consumption upgrades continue, and IPO momentum remains strong, these industries are poised to lead the market’s structural evolution and inject long-term vitality into Hong Kong’s capital landscape.