Capital market reforms, investment trends in Hong Kong and Taiwan

Hong Kong IPOs 2025: Market views, mega deals, emerging trends

Hong Kong cemented its status as the world’s leading initial public offerings venue in 2025, marking a year of momentum, progress and transformation. By mid-December, the market had raised HKD274.6 billion (USD35.2 billion) from 106 new listings, with four of the world’s top 10 IPOs taking place in the city. The market was powered by mega-deals, including Contemporary Amperex Technology’s (CATL) USD5.3 billion H-share listing, alongside billion-dollar IPOs by Hengrui Pharmaceuticals, Haitian Flavouring and Food, and Sanhua Intelligent Controls.

Driven by the “DeepSeek moment”, innovative technology initiatives and sweeping market reforms, global capital flowed back into Hong Kong. Supported by the HKEX’s reforms on price discovery, the launch of the Technology Enterprises Channel (TECH) and specialist regimes for biotech (chapter 18A) and technology (chapter 18C), Hong Kong’s IPO ecosystem has successfully re-emerged as Asia’s foremost hub for quality, innovation-driven capital formation.

Hong Kong IPO structures

Hong Kong remains one of the world’s leading venues for IPOs, serving as a unique superconnector between the Chinese mainland and global investors. The market operates under a dual-regulatory regime jointly overseen by the HKEX and the Securities and Futures Commission (SFC).

The main board caters to established companies, while the Growth Enterprise Market (GEM) board focuses on smaller or high-growth enterprises. Key statutes include the Securities and Futures Ordinance (cap 571), the Companies Ordinance (cap 622) and the Companies (Winding Up and Miscellaneous Provisions) Ordinance (cap 32), supported by the HKEX listing rules.

Hong Kong IPO 2025 market trends and performance

After several subdued years, Hong Kong’s IPO market staged a powerful recovery in 2025.

Momentum accelerated throughout the year, supported by a deepening pipeline of large-cap issuers and the return of the Chinese mainland enterprises. As of 19 December 2025, the HKEX welcomed 106 new listings (including transfers from the GEM to the main board), raising a total of HKD274.6 billion. This represents a sharp rise in fundraising levels compared to the previous year.

The cash market also saw a resurgence in activity, with average daily turnover in the first 11 months of 2025 reaching HKD255.8 billion – an increase of 95% year-on-year. Furthermore, companies listed on the HKEX raised USD66 billion in follow-on offerings, highlighting the vibrancy and depth of the capital markets.

This resurgence underscores a revival of investor confidence from both China and overseas, with strong engagement from Asian, European, Middle Eastern and North American funds.

Top Hong Kong IPO deals in 2025

The year was headlined by CATL, whose USD5.3 billion H-share IPO on 20 May 2025 was the largest globally since 2023. CATL’s debut underscored the depth of investor appetite for new-energy and clean-technology businesses.

Together with three other billion-dollar listings – Hengrui Pharmaceuticals, Haitian Flavouring and Food and Sanhua Intelligent Controls – these offerings accounted for four of the world’s 10 largest IPOs in 2025.

A + H, biotech, specialist tech listings in Hong Kong

Parallel to regulatory reform, Hong Kong has witnessed a structural shift in its listing profile. Three prominent trends stood out in 2025: the rise of A + H dual listings and increased activity under chapter 18A (biotech) and chapter 18C (specialist technology). Since the implementation of these chapters, 88 biotech and specialist technology companies have listed on the HKEX.

A + H Listings. Hong Kong witnessed a notable resurgence in A + H listings, reflecting a broader recalibration of listing strategies by Chinese mainland issuers. The A + H model continues to provide an attractive pathway for mainland enterprises to diversify their investor base while maintaining regulatory familiarity.

In the first half of 2025 alone, eight A-to-H IPOs completed their offerings, raising an aggregate of about USD10.1 billion. Notably, CATL’s H-share tranche was priced at a premium relative to its A shares at listing, a rare occurrence reflecting heightened demand from international investors and confidence in Hong Kong’s price-discovery mechanisms.

Chapter 18A: Biotech companies. The biotech listing regime under chapter 18A continues to be a pillar of the market. By allowing pre-revenue and pre-profit biotechnology companies to list, the HKEX has positioned itself as a top global fundraising centre for the sector.

In November 2025, the HKEX introduced the Hang Seng Biotech Index Futures, offering investors a risk management tool for this dynamic sector. This complements the existing suite of biotech-related offerings and flagship equity index derivatives.

Chapter 18C: Specialist technology companies. Following the success of chapter 18A, the chapter 18C specialist technology regime (launched in March 2023) has broadened market access for high-growth companies in AI, robotics, semiconductors and clean energy.

Building on these developments, the HKEX launched the HKEX Tech 100 Index in 2025. This is the group’s first equity index focused exclusively on Hong Kong’s technology sector, tracking 100 prominent large and mid-cap companies spanning six innovative industries.

Hong Kong TECH listing platform

In May 2025, the HKEX and the SFC launched the Technology Enterprises Channel (TECH). This dedicated platform facilitates listing applications for specialist technology and biotech firms under chapters 18A and 18C.

TECH features early engagement opportunities, allowing applicants to seek preliminary feedback on eligibility before formal submission, and a confidential filing option, which protects proprietary data and trade secrets during the vetting process. This strategic move empowers innovative companies to access capital more efficiently and accelerates their growth within Hong Kong’s financial ecosystem.

Hong Kong global expansion initiatives, strategic partnerships

The HKEX expanded its international connectivity in 2025 to attract issuers from diverse regions. It welcomed listings from markets including Kazakhstan, Singapore, Thailand and the UAE. Key strategic developments included:

(1) Middle East expansion. The opening of a Riyadh office and the announcement of a Dubai-based commodities pricing subsidiary (Commodity Pricing and Analysis) to strengthen its presence in the Gulf region.

(2) Partnerships. The addition of the Stock Exchange of Thailand as a recognised stock exchange and the signing of a memorandum of understanding with the Abu Dhabi Securities Exchange.

Hong Kong IPO regulatory reforms and market updates

Optimising IPO price discovery. In August 2025, the HKEX implemented phase 1 of its minimum spread reduction to lower transaction costs and enable more efficient price discovery. This followed the Consultation Conclusions on Optimising IPO Price Discovery and Open Market Requirements.

Key reforms included replacing the flat public-float threshold with a tiered structure tied to market value, introducing a free-float requirement to ensure immediate liquidity and adjusting the allocation between institutional and retail investors to reduce volatility.

Settlement reforms. To further enhance liquidity, the HKEX published a discussion paper exploring ways to accelerate settlement in the cash market. Additionally, the stock settlement fee structure was updated by removing both minimum and maximum fee limits, adjusting the ad valorem rate to 0.42 bps.

Upcoming initiatives. Looking ahead to 2026, upcoming initiatives include proposals to standardise board lots for securities trading with eight options and the launch of the Uncertificated Securities Market.

Conclusion: HK’s IPO-led capital resurgence

2025 was a year of momentum, with global investors returning with conviction. With the HKEX ranking as the world’s top IPO venue and raising HKD274.6 billion from 106 new listings, the market has entered a renewal phase centred on quality issuers and sector diversification.

Liquidity has deepened, pipelines have strengthened, and bold ideas have found capital. As the exchange looks to 2026, the focus remains on building a future-ready ecosystem – powered by technology and partnerships – that connects ideas with capital. With continued regulatory stability and deep capital pools, Hong Kong is well-positioned to sustain its leadership as Asia’s foremost capital-raising hub.