On May 20th, Contemporary Amperex Technology Co. Limited (CATL) made its debut on the Hong Kong Stock Exchange, marking a significant milestone in the recent resurgence of the Hong Kong IPO market. The company’s H-share price soared rapidly after the opening bell, surprisingly surpassing its A-share price. The IPO raised a staggering HK$41 billion, making it the largest initial public offering of 2025. Following CATL’s lead, major players such as Hengrui Medicine and Ji Hong Shengsuo also entered the Hong Kong stock market, further fueling the market’s upward momentum.
According to data from Wind, since the start of this year, the total funds raised through IPOs on the Hong Kong stock market have exceeded HK$77.6 billion. This figure represents a more than seven – fold increase compared to the same period last year, approaching 90% of the total fundraising for the entire year of 2024 and far surpassing the levels seen in 2023. Market analysts attribute this IPO boom to several key factors: continuous policy benefits, the accelerated internationalization strategies of Chinese enterprises, and the Hong Kong Stock Exchange’s ongoing market reforms.
Filling the Hard Technology Gap and Rebuilding the Ecosystem
“Our IPO business this year has far exceeded expectations. The team has been working around the clock, and late – night finishes have become the norm,” Li Jie, a Hong Kong – based investment banker (pseudonym), told the Securities Times. The strong performance of newly listed stocks has further ignited the enthusiasm of companies looking to go public. “The number of companies inquiring about listing has skyrocketed, and everyone is eager to seize this golden opportunity,” he added.
At the recent CATL listing ceremony, Chen Yiting, CEO of the Hong Kong Stock Exchange, told Securities Times reporters, “I’ve been extremely busy meeting with various enterprises, averaging at least one or two meetings per day. They all show a strong interest in listing on the Hong Kong stock market. We also have a solid pipeline of follow – up financing projects.” She highlighted that the “Technology Enterprise Special Line” launched by the Hong Kong Stock Exchange has received an overwhelmingly positive response recently. The listing department has been inundated with inquiries, and she anticipates that the wave of technology company listings will continue, encouraging enterprises to make full use of the special line.
This vibrant scene evokes memories of the wave of Chinese – funded stock returns from 2018 to 2021. Back then, the Hong Kong Stock Exchange underwent its most significant transformation in decades, including allowing companies with different share structures to list. This attracted major Chinese – funded giants like Alibaba, Meituan, NetEase, and Baidu, reshaping the Hong Kong stock market ecosystem from one dominated by traditional finance and real estate industries to a thriving new economy sector. However, in recent years, the market has faced criticism for its lack of “hard technology” companies. Now, the current IPO boom is changing this narrative.
In March 2023, the Hong Kong Stock Exchange announced the addition of Chapter 18C for specialized technology companies in the “Main Board Listing Rules.” This new rule allows “specialized, innovative, and high – quality” technology companies without revenue or profits to list on the Hong Kong stock market, covering mainstream and cutting – edge technology fields such as information technology, advanced hardware, advanced materials, new energy and environmental protection, and new food and agricultural technology. This move represents another major reform since 2018, signaling the Hong Kong stock market’s transition towards a “hard technology” focus.
Currently, the “hard technology” sector in the Hong Kong stock market is taking shape. Since the second half of 2024, technology companies including Black Sesame Intelligent, Horizon Robotics, Youjia Innovation, Guo Fu Hydrogen Energy, Sai Mo Technology, and CATL have gone public. In the pipeline of potential listings, companies like Zejing Electronics, Nuobi Kan Technology, Zhongding Integration, Ying Si Intelligent, Selis, Nanxin Micro, and Tianyu Semiconductor are preparing for their debuts. These firms operate across a wide range of areas, covering popular sectors such as artificial intelligence, semiconductors, and new energy.
Hong Kong: A Globalization Platform for Mainland Enterprises
In recent years, mainland enterprises have been accelerating their global expansion. In April 2024, the China Securities Regulatory Commission introduced five measures for capital market cooperation with Hong Kong, explicitly supporting qualified mainland industry leaders to list and raise funds in Hong Kong.
To better accommodate the listing requirements for both A – shares and H – shares, the Hong Kong Stock Exchange has continuously optimized its listing mechanism. In 2024, it introduced a fast – track approval schedule for eligible A – share companies. Eligible A – share listed companies that submit complete application materials generally only receive one round of feedback, and the regulatory review is completed within 30 working days.
Many A – share companies that have listed in Hong Kong have emphasized the “going global” aspect in their current plans. Hong Kong has emerged as a crucial channel for mainland enterprises to expand internationally. For example, after raising funds in the Hong Kong stock market, CATL plans to allocate about 90% of the proceeds to推进 the construction of the first and second phases of its project in Hungary. Shire Health Care has clearly stated that its Hong Kong listing is a key step in its “going global” strategy.
Li Jie noted, “Currently, many high – quality Chinese enterprises are facing the need to expand overseas and have a strong demand for funds. With intense competition in the domestic market, seeking new growth opportunities abroad has become an inevitable choice. This is a major reason why A – share companies are listing in Hong Kong. In terms of financing, the IPO pricing level in Hong Kong is comparable to A – share private placements, but the process and review are faster, which is a huge advantage for cash – strapped enterprises.”
Huang Lichong, President of Hui Sheng International Capital, said, “As an international financial center, Hong Kong has a highly open capital market. By listing in Hong Kong, enterprises can more easily obtain foreign exchange funds, providing strong financial support for their global expansion. They can directly access the global capital market, enhancing their international reputation and brand influence. Hong Kong’s common law system, which is similar to those of many international markets, helps enterprises better align with international regulations during the internationalization process, reducing legal and compliance risks in cross – border operations.”
Regarding how to align with the “going global” strategies of mainland enterprises, Hong Kong has a clear positioning and approach. At a recent forum hosted by the Hong Kong Stock Exchange, Hong Kong’s Financial Secretary Chan Mo – po revealed that over a hundred large enterprises are currently in the listing preparation queue. “The geopolitical situation presents both challenges and opportunities. On one hand, we are seeing Chinese companies returning to the mainland; on the other hand, the thriving technological ecosystem in the mainland has given rise to a large number of high – quality innovative enterprises. Their demand for ‘going global’ financing aligns perfectly with the country’s ‘going global’ strategy,” Chan Mo – po said.
As the saying goes, “Failure to go overseas means failure,” and more and more enterprises are moving towards globalization. These companies raise funds in Hong Kong to support their business development and also leverage Hong Kong’s high – quality professional services and excellent platforms to facilitate their internationalization efforts, according to Chen Maobo.
High – Quality Assets and Global Capital: Rebuilding Hong Kong’s Financial Status
According to the latest research from China International Capital Corporation (CICC), five companies – Haitian Flavor & Seasoning, Anji Food, Sanhua Zhikong, Baile Tianheng, and Kanglue Weishi – have completed the filing process and are preparing for Hong Kong listings. Additionally, 18 companies, including Sany Heavy Industry and Celeste, have submitted their listing materials to the China Securities Regulatory Commission, and another 25 companies, such as Weilipo and Muyuan, have announced their H – share listing plans. CICC stated that there are nearly 50 A – share companies planning to list in Hong Kong, with potential liquidity demands ranging from HK$150 billion to HK$180 billion. Deloitte China predicts that in 2025, more large A – share listed companies, domestic leading enterprises, US – listed Chinese companies, and overseas companies will go public in Hong Kong. The total number of new listings in Hong Kong for the year is expected to reach around 80, with financing totaling approximately HK$130 billion to HK$150 billion.
The influx of a large number of high – quality companies listing in Hong Kong will further enhance the vitality of the Hong Kong stock market and solidify Hong Kong’s status as an international financial center. CICC believes that in the long run, the greatest strength of a healthy market lies in the continuous listing of good companies, which attracts more assets, and in turn, more high – quality companies. This creates a positive feedback loop between companies and funds. The series of reform measures implemented by the Hong Kong stock market in recent years are expected to attract more funds, achieving a two – way positive cycle between high – quality companies and capital, and strengthening Hong Kong’s role as a window for Chinese asset investment and an offshore RMB center.
Huang Lichong believes that European and American capital has become more cautious in its investment in Chinese enterprises. Meanwhile, Hong Kong, as a bridge between international capital and mainland enterprises, has a base of investors who are more receptive to mainland companies. With the advancement of China’s “dual circulation” strategy, Hong Kong’s role as a bridge in internal and external circulation is becoming increasingly important. By listing in Hong Kong, technology enterprises can not only attract international capital but also integrate more effectively into the global supply chain and market.
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