HKEX Insight

Hong Kong’s capital markets sustained strong momentum in Q3 2025, maintaining their position as the no. 1 IPO fundraising hub in the world.

As of the end of Q3 2025, Hong Kong listings have raised US$23.9 billion this year across 66 IPOs², up 192% and 45% YoY, respectively, compared to the same period in 2024 and US$5 billion more in IPO fundraising than the second leading exchange.

IPOs from companies in TMT, new energy, healthcare and consumer sectors have featured prominently. Average Hong Kong aftermarket performance has been strong over both the short-and medium-term, with jumbo transactions particularly standing out.

Placements, convertible and exchangeable bonds have buoyed follow-on issuance, with 11 US$1 billion+ transactions across a range of products driving US$58.5 billion of follow-on fundraising YTD at the end of Q3 2025 (up 172% YoY), accounting for an estimated 52% of total fundraising in Hong Kong.

This momentum reflects deep liquidity that has seen multiple issuers return to the public markets several times this year, with placements frequently larger than IPOs – highlighting liquidity depth, supportive market dynamics and an “issuer friendly” framework that streamlines post listing capital raising.

With US$19.1 billion of volume YTD, total convertible / exchangeable bond issuance has already broken records for annual fundraising in the category, with several US$1 billion+ transactions recorded this year.

Firms from the Chinese Mainland are increasingly using Hong Kong’s capital markets to fund international expansion, fueling a surge in fundraising activity.

Publicly released data show that for 2025 YTD, half of all these IPO issuers generate significant revenue outside the Chinese Mainland, and funds raised by these issuers account for around 80% of IPO fundraising in Hong Kong. 

These developments underscore a strategic push to move beyond exports and build internationally.

China’s global value chain has evolved: today’s champions export not just products, but innovation and advanced technology. Chinese firms are now building overseas R&D and production hubs, setting new standards for innovation in sectors like EV batteries and AI, and accelerating growth in new markets.

By localising supply, routing around tariffs and shortening logistics – especially in EVs and batteries – Chinese companies are diversifying supply chains and positioning production closer to end-markets.

Localising in priority markets such as Europe, South America and Southeast Asia secures tariff-free access and greater resilience to trade frictions, while overseas expansion also diversifies revenue and reduces dependence on the domestic cycle.

This approach also extends to consumer brands in beauty, lifestyle, and food tech which are investing in flagship stores, distribution networks and digital storefronts, tailoring products through overseas R&D and design hubs.

Amid all the fundraising activity, signs are emerging of a shift in how Chinese companies present themselves to investors. Whereas global conglomerates “carve out” their China operations to list in Hong Kong, some Chinese mainland corporates now are putting international assets into offshore vehicles for Hong Kong listings.

1. Zijin International's IPO raised US3.2 billion on the day of listing. Including the post-listing overallotment exercise, the total fundraise reached US$3.7 billion.
2. IPO calculations exclude SPAC transactions.