Hong Kong Stock Exchange (00388): The total amount of funds raised through IPOs in Hong Kong in 2025 reached $37.4 billion, an increase of 231% year-on-year, firmly securing its position as the world's top new stock financing center.

On February 10, the Hong Kong Stock Exchange (00388) released a review of the Hong Kong equity capital market in 2025. In 2025, the performance of the Hong Kong capital market was impressive, with many listed stocks performing well, trading volumes repeatedly reaching new highs, and active trading in the Hong Kong Stock Connect. According to Dealogic, the total capital raised in the Hong Kong equity capital market in 2025 reached $103 billion, an increase of 164% compared to the previous year. Of this, the amount raised in initial public offerings reached $37.4 billion, a 231% increase year-on-year, while the amount raised in secondary offerings after listing reached $66 billion, up 136% year-on-year. At the same time, the secondary market was also quite active: the average daily turnover in the spot market increased 89.5% year-on-year, and the Hong Kong Stock Connect was also very active. Two major growth drivers The Hong Kong capital market has helped issuers at different stages of development to access financing, with significant growth in new stock IPOs and secondary offerings throughout the year. By the end of 2025, Hong Kong reclaimed its position as the global leader in new stock fundraising, with 119 new listed companies raising a total of $37.4 billion, including two of the top five new stocks globally. The total amount raised in a year was also a new high for Hong Kong since 2021, exceeding the total for the previous three years combined. According to Dealogic and Bloomberg data, new stocks performed strongly after listing, with stocks raising $100 million or more seeing an average price increase of 23.8% on the first day of listing and an average increase of 30.7% in the first month after listing, marking the best performance in nearly 20 years. The data also shows that secondary offerings after listing in Hong Kong reached a record high of $66 billion in 2025, with $20 billion being raised by issuers through the issuance of equity-linked products, setting a new record. Multiple landmark transactions were also recorded during the year, with more than 20 large transactions exceeding $1 billion, including the largest share sale in the global automotive industry and the second largest technology convertible bond offering globally. The increased market activity reflects the ongoing efforts to optimize the market. For example, since August 2025, the optimization of the IPO pricing mechanism and public market regulations has gradually taken effect, bringing several positive effects, such as optimizing the allocation of new stock offerings, and lowering the threshold for public shareholding. Participation of diverse investors The investor structure in the primary and secondary markets in Hong Kong is becoming more diverse, encompassing global institutional investors and retail investors from the mainland. HKEX and Dealogic data show that institutional investors, including sovereign wealth funds and long-term investors from Asia, Europe, and North America, accounted for a significant portion of the top 20 most active equity capital market investors in Hong Kong last year. Asia's global financing center In 2025, the number of international companies listed in Hong Kong reached a five-year high, attracting issuers from the United States, Southeast Asia, and the United Arab Emirates to choose to conduct initial public offerings in Hong Kong. In 2025, nearly one-fifth of the companies listed in Hong Kong had dual or multiple listings in different locations, with some U.S. depositary receipts and A-share companies choosing to list in Hong Kong, including a leading mainland Chinese battery manufacturer, the majority of whose proceeds were used to establish plants in Europe, making it one of the many Chinese mainland companies expanding their international footprint through listing in Hong Kong in 2025. According to Dealogic and Bloomberg data, 19 A-share companies listed in Hong Kong in 2025, raising a total of $17.7 billion, with six companies raising over $1 billion each, including a leading global pharmaceutical research and development company, becoming the largest pharmaceutical company listed in Hong Kong in the last five years. Companies eligible for listing on mainland Chinese stock exchanges have sought to expand their shareholder base and increase liquidity through dual listings. Bloomberg data shows that the average monthly trading volume of A-share companies listed in Hong Kong increased by 9% in 2025. Industry composition becomes more diversified In 2025, Hong Kong maintained its position as a diversified fundraising center, ranking among the top globally in fundraising across various industries. According to Dealogic and Bloomberg data, Hong Kong ranked first globally in new stock fundraising in the industrial and new energy sectors, with $14.3 billion, and second globally in equity capital market issuance at $24.7 billion. These fundraising activities covered multiple industry sectors, with a group of leading electric vehicle and battery manufacturers from mainland China raising significant funds in 2025, along with a leading logistics provider in Asia successfully listing in Hong Kong. Data from Dealogic and Bloomberg also show that the fundraising scale in the TMT (Technology, Media, and Telecommunications) industry in Hong Kong reached a new high since 2021, totaling $34.5 billion, ranking second globally in equity capital fundraising. New TMT companies raised a total of $7.9 billion in funds during the year, with strong demand from investors: for new stock offerings raising $100 million or more, institutional subscriptions were 13 times oversubscribed, and retail subscriptions were over a thousand times oversubscribed. However, post-listing secondary offerings were the main source of funding for TMT issuers, with over 100 secondary offerings raising a combined $26.6 billion, including two of the top five TMT transactions globally in 2025. Data from Dealogic and Bloomberg shows that the healthcare and biotechnology sector in Hong Kong stood out in 2025, with equity capital market issuance reaching $15.6 billion, ranking second globally and reaching the highest level since 2021. The majority of the funds raised were from secondary offerings after listing ($11.4 billion). In terms of subsectors, the biotechnology sector dominated, raising $6.2 billion. Traditional industries also performed remarkably well. According to Dealogic and Bloomberg data, the largest consumer goods IPO and the two largest pure industrial company listings globally in 2025 chose to list in Hong Kong. In 2025, the IPO fundraising amount in the metal and mining sector in the Hong Kong market led globally, reaching $5.4 billion; at the same time, the total equity fundraising market issuance reached $9.5 billion, setting a new high in nearly a decade. Development trends for 2026 The start of 2026 in the Hong Kong capital market is strong - according to Dealogic data, as of January 30, the equity capital market issuance reached $15.8 billion, six times the $2.5 billion issuance in the same period in 2025. Companies in the artificial intelligence field accounted for a significant proportion of IPO activities in Hong Kong, laying an important foundation for building a vibrant ecosystem of artificial intelligence issuers in Hong Kong and providing investors with more opportunities to invest in leading innovative companies. By the end of January 2026, over 400 companies were queuing up to list, representing a diverse range of industries, including healthcare, raw materials, TMT, and industrial sectors. Among them are over 50 companies applying for listing under Chapter 18A, 18C, and 8A of the Listing Rules, including companies that have made breakthroughs in cancer treatment, intelligent Siasun Robot&Automation, and automated logistics. HKEX previously launched the "Inno Space" and allowed special technology companies to choose to submit listing applications in a confidential manner, these measures to facilitate the listing of technology companies are expected to continue driving the fundraising amount in the cutting-edge fields such as artificial intelligence and biotechnology in the Hong Kong market to grow.