stock market Photo:VCG
Hong Kong's IPO (initial public offering) market kicked off on a higher note in 2025,
MK sport led by a significant rise of companies and investors from the Chinese mainland.
The world's battery behemoth, Contemporary Amperex Technology Co (CATL), based in Southeast China's Fujian Province, formally applied for a listing on the Hong Kong Stock Exchange (HKEX) on Tuesday, as the Chinese giant seeks to shore up its battery manufacturing ability in Hungary and other operations overseas.
Proceeds from the listing will mainly support overseas capacity expansion, international business growth, and working capital needs, and support the company's long-term internationalization strategy, CATL said in a statement.
And, bubble tea maker Guming Holdings raised HK$1.8 billion ($233 million) by offering 182.4 million shares at HK$9.94 apiece, according to a company filing with Hong Kong Stock Exchange (HKEX) on Tuesday.
According to financial data service Wind and HKEX, 40 companies have filed for IPOs on the main board of HKEX as of February 3, 2025, doubling from 20 seen in the same period last year. As of February 3, 36 IPO applications are under review, comprising 29 first-time filings and 11 resubmissions. Notably, nearly all of those 40 companies are from the Chinese mainland.
Additionally, the "A+H" listing model has emerged as a major trend in Hong Kong's IPO market in 2025. Among the 40 companies applying for a main-board listing, seven are already listed on China's A-share market.
According to a HKEX's report in December, the stock exchange proposed lowering the H-share proportion requirement for "A+H" public companies from 15 percent to 10 percent, or meeting a minimum market value of HK$3 billion.
The policy shift has significantly lowered the IPO threshold, enhancing HKEX's appeal for A-share companies seeking dual listings, market analysts say.
"Hong Kong's strong standing in the global capital market and its established regulatory framework makes it a prime IPO destination, particularly for high-tech firms. Recent reforms easing listing requirements, including dual-class shares and pre-profit R&D firms have broadened the market's IPO eligibility, attracting more mainland enterprises seeking listing there," Zhao Xijun, co-president of the China Capital Market Research Institute at the Renmin University of China, told the Global Times on Wednesday.
He highlighted Hong Kong market's profound international investor base, "Global investors regard Hong Kong as a crucial entry point into Chinese mainland market," Zhao said, noting that an increasing number of the mainland-based enterprises opt for Hong Kong listings due to its easier access to international capital.
As China emphasizes development of AI, new energy, and biopharmaceuticals, Zhao noted that a rising number of unicorns are seeking access to global capital. "Hong Kong provides an ideal platform for these firms," he said, noting that investor enthusiasm for high-tech start-ups will cement the city's status as a preferred IPO venue.
Deloitte in December 2024 forecasted that Hong Kong's stock market will likely receive some 80 IPOs in 2025, which aim to raise an estimated sum of HK$130 billion to HK$150 billion. PwC shares a similar outlook, projecting total fundraising there to reach HK$130 billion to HK$160 billion, which could restore Hong Kong's position among the world's top three IPO markets.
Hong Kong stocks rose on Wednesday morning, lifting the benchmark index to its highest level in four months, as market excitement over the advanced Chinese AI chatbot DeepSeek has continued to drive sentiment.
Global Times
