Hong Kong IPO Market Surges in Q1 2025: High-Tech and “A+H” Listings Drive Growth

The Hong Kong IPO market has roared back to life in early 2025, with first-quarter fundraising nearly tripling year-on-year to HKD 17.7 billion.

This performance was driven by active listings of large-scale new offerings, with 15 IPOs completed during the quarter—six of which exceeded HKD 1 billion in fundraising—pushing the average deal size up 193% year-on-year. Market analysts highlight that high-tech companies and the “A+H” listing model will be the primary growth drivers for the full year.

Global IPO Market Shows Steady Growth, Hong Kong Ranks Fourth

Global capital markets demonstrated resilience in Q1 2025, with 283 IPOs completed, raising USD 28.2 billion, a 4% year-on-year increase in fundraising. The two major U.S. exchanges dominated, contributing 30% of global fundraising, while the Tokyo Stock Exchange secured third place after executing its largest IPO in nearly six years. The Hong Kong Stock Exchange ranked fourth, raising HKD 17.7 billion (approximately USD 2.26 billion).

Technology and Consumer Sectors Lead, Market Liquidity Improves

Despite lingering uncertainties around trade tariffs and interest rates, the AI boom continues to attract global capital. Hong Kong’s market has also benefited from this trend, particularly with the rise of DeepSeek, which has heightened global investor interest in mainland China’s high-growth sectors and boosted valuations for mainland tech firms as well as overall market liquidity.

However, the consumer sector accounted for three of Hong Kong’s top five IPOs in Q1, with the largest being the listing of Mixue Bingcheng, China’s largest tea beverage chain, which set a new record for subscription volume in Hong Kong’s IPO history with over HKD 1.8 trillion in orders.

Meanwhile, the “A+H” listing model is gaining traction. The number of companies in Hong Kong’s IPO pipeline has risen to 120, up significantly from 86 at the end of 2024, with about 25% already listed on the A-share market. Analysts believe that dual listings not only broaden financing channels but also enhance a company’s international visibility.

Policy Support and Regulatory Optimizations Fuel Market Recovery

The Hong Kong government has introduced several key policy initiatives in the 2025-26 Budget to enhance the IPO ecosystem, including improving the vetting process for listings, optimizing thresholds for listing, and conducting a comprehensive review of market structure. The Hong Kong Exchanges and Clearing Limited (HKEX) is actively advancing plans to establish a dedicated “Technology Enterprises Channel” (TECH) to help innovative companies prepare for listing applications. Additionally, the HKEX is exploring measures to optimise IPO pricing and offering mechanism to enhance capital management flexibility for “A+H” issuers.

Market observers note that with recovering investor confidence and advancements in cutting-edge sectors like AI and biotech, more mainland high-growth companies may seek listings in Hong Kong through specialized tech channels. Coupled with the growing popularity of the “A+H” model, Hong Kong’s IPO market is poised for sustained strength in 2025.