PwC: 2025 poised to be the most active IPO market for Hong Kong in four years; fundraising expected to rank no.1 globally

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• Many Chinese companies are looking to set up fundraising platforms in Hong Kong to expand their businesses; some are also planning to spin off their China operations for separate listings in the city.
• The high level of liquidity in the banking system suggests strong capital inflows, creating favourable conditions for IPO fundraising in the second half of the year.
• Sectors such as information technology (IT) and telecommunications services, healthcare as well as retail, consumer goods, and services, are expected to be the top market focus.

Hong Kong, 2 July 2025 – Hong Kong's IPO market rebounded significantly in the first half of 2025, as a growing number of A-share listed companies sought listings in Hong Kong. The improved market liquidity, and rising international investor demand for core Chinese assets also drove market activity. 

Fundraising activity surged over the period, buoyed by continued policy support from the Chinese government and various initiatives introduced by the Hong Kong Stock Exchange (HKEX) to attract listings. In the first half of 2025, Hong Kong raised HKD 107.1 billion through IPOs – seven times the amount raised in the same period last year. Hong Kong was the top fundraising hub globally and had the second-highest half-year fundraising total in the past decade. The fundraising amount in the first half of 2025 already surpasses the entire amount raised in 2024.

During the period, there were 44 IPOs completed in Hong Kong: 42 main board listings, one GEM-to-main board transfer (without fundraising), and one De-SPAC transaction, representing a 47% increase compared to the first half of 2024. On the main board, retail, consumer goods, and services accounted for 34% of listings, followed by industrials and materials, and healthcare (each accounted for 23%).

The second half of the year is traditionally a peak period for IPOs in Hong Kong, and the current momentum is expected to continue. Over 200 companies have already submitted listing applications, spanning across different industries, including traditional sectors like manufacturing, retail, consumer goods and services, as well as new economy industries like biotech, healthcare, AI, information technology, and telecommunications. Large-cap A-share companies, Chinese concept stocks, and overseas companies are actively seeking to raise funds in Hong Kong.

Diamantina Leong, PwC Hong Kong Capital Markets Services Partner, commented: “Despite ongoing uncertainties, such as geopolitical tensions and trade tariffs, the high level of liquidity in Hong Kong's banking system is creating favourable conditions for corporate listings and fundraising. As capital continues to flow in, Hong Kong's IPO market is showing strong growth momentum, becoming a vital platform for Chinese enterprises to expand and raise funds. Many large-cap companies listed on the A-share market, as well as those planning to spin off their China operations, are looking to list in Hong Kong. This highlights Hong Kong's strengths as an international financial centre and reinforces its standing in global capital markets. Looking ahead, the market is full of opportunities. With supportive policies and ample liquidity, we expect 2025 to be the most active fundraising year for IPOs in the past four years.”

In May 2025, HKEX launched the Technology Enterprises Channel (TECH), providing pre-listing guidance for specialist technology companies and biotech companies. This initiative aims to strengthen Hong Kong's ecosystem and make it more attractive for innovative companies. The biotech and pharmaceutical sectors have seen significant benefits. As of December 2024, there were three specialist technology companies listed under the Chapter 18C regime and 67 biotech companies listed under Chapter 18A. By June 2025, the number of biotech listings had increased to 73. AI, IT, and telecommunications have also emerged as major growth areas. In the long term, the proportion of innovative healthcare and tech companies will continue to rise. TECH focuses on early-stage growth companies, complementing Hong Kong's existing strength in mature industries.

PwC remains optimistic about the Hong Kong IPO market and expects the momentum to continue into the second half of 2025. It forecasts 90 to 100 IPOs this year, with total fundraising projected to exceed HKD 200 billion. The IT & telecommunications, healthcare and retail, consumer goods, and services sectors will be key market drivers.

Eddie Wong, PwC Hong Kong Capital Markets Leader, added: “Regulators have made many improvements to listing rules. These include more favourable conditions for various types of companies, streamlining approval processes, and enhancing transparency and efficiency. These reforms are attracting more companies to list in Hong Kong. Recent strong IPO performances have further boosted investor confidence. Improved market liquidity and rising valuations are encouraging more companies to turn to Hong Kong's capital markets, underscoring the city's long-term financial resilience. Dual A+H share listings are growing in popularity, allowing companies to tap into diverse investor bases across both markets. We are therefore forecasting IPO fundraising to reach HKD 200-220 billion, with Hong Kong poised to reclaim its top global ranking in terms of fundraising. We also expect the IPO market to remain active into next year, driven by several large-scale listings.”

In the first half of 2025, the Chinese Mainland's A-share market saw a total of 51 companies successfully completing their IPOs, with aggregate fundraising surpassing RMB 37.3 billion. Compared with the same period in 2024, the number of IPOs rose by 16%, while total capital raised increased by 15%. The upward trend reflects the regulatory authorities' policy support and optimisation of regulatory efficiency.

Companies in the “key & core technology” space and those aligned with the country's drive for new productive forces accounted for a substantial share of IPOs, signalling China's rapid progress in technological innovation, as well as the continued momentum of industrial upgrading.

Looking at market segments, the ChiNext board led in IPO volume with 20 new listings, while the Shanghai Main Board ranked first in funds raised, accounting for RMB 14.6 billion. Concurrently, the STAR Market, Shenzhen Main Board, and Beijing Stock Exchange each showcased their unique market positioning, collectively contributing to a more diversified and dynamic IPO ecosystem within the A-share market. Notably, the Beijing Stock Exchange emerged as a key player in IPO filings and pre-listing advisory during the first half of the year. This growth is closely tied to its clear strategic focus on serving “new, distinctive, specialised and sophisticated” small and medium-sized enterprises (SMEs), as well as to the advantageous policies supporting ongoing development. Although the number of IPOs on the Beijing Stock Exchange slightly declined compared to the previous period, the average amount of funds raised per offering trended upward—highlighting the exchange's increasing appeal among high-quality, innovation-driven SMEs.

Looking ahead, the refinement of policies — particularly the formal inclusion of pre-profit tech companies in the IPO eligibility framework — is expected to enable the A-share IPO market to gradually enter a new phase of stable, sustainable development. This maturation will reinforce stronger financial support for high-quality development of the real economy.