Investment Banks See Rebound in A-Share Listings as Hong Kong Activity Surges
China’s capital markets are experiencing a notable recovery in IPO activity, providing much-needed relief to investment banks after a dismal 2024. Data reveals both A-share and Hong Kong listings gaining momentum, with domestic securities firms capturing significant market share in the rebound.
A-Share Market Recovery
Key Metrics (Jan-May 2025)
- 45 IPOs completed (+12.5% YoY)
- ¥336.55B total raised (+19% YoY)
- Zhejiang leads provinces with ¥9.69B fundraising
Top Underwriters
- CSC Financial: ¥7.92B across 3 deals
- Huatai United: ¥3.03B (4 deals)
- CITIC Securities: ¥2.67B (6 deals)
“After last year’s drought, we’re seeing green shoots in the A-share IPO market,” noted a Shanghai-based capital markets banker. “The ‘8/27’ policy adjustments in 2023 created pent-up demand that’s now being released.”
Hong Kong’s IPO Boom
Staggering Growth
- HK$77.36B raised Jan-May (+707% YoY)
- May alone saw HK$55.8B including CATL’s listing
- 23 underwriters active, majority Chinese
Leaderboard
- CICC: 8 mandates
- Huatai International: 6 deals
- CMB International: 5 transactions
“Hong Kong has become the release valve for Chinese companies seeking liquidity,” said UBS’s Zhu Zhengqin. “Valuation gaps and improved global risk appetite are driving this renaissance.”
Structural Shifts
Regional Distribution
- Yangtze River Delta dominates with 55% of A-share IPOs
- Guangdong maintains strong showing (9 deals)
Product Mix
- Traditional industrials lead A-share listings
- Tech/healthcare dominate Hong Kong floats
Deloitte forecasts 80-90 Hong Kong IPOs raising HK$130-150B for full-year 2025, potentially marking the best performance since 2021.
Investment Bank Implications
Revenue Impact
- Top 4 firms already exceeding ¥200M in IPO fees
- Secondary offerings/convertibles add ¥214.8B to capital raises
“The dual-engine of A-share recovery and Hong Kong boom creates earnings visibility,” said Yongxing Securities analyst Hu Jiang. “For full-service Chinese brokers, this could offset weak trading commission trends.”
As global investors reassess Chinese assets, the IPO window appears open wider than at any point since 2022. Whether this marks sustained recovery or temporary reprieve will depend on macroeconomic conditions and regulatory continuity through year-end.
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