Transcript
Transcript
Transcript
Hong Kong just pulled off the world’s most dramatic IPO comeback. It’s now on track to beat New York and NASDAQ in new listings. But what’s really fueling this surge? Well, last year, IPO fundraising in Hong Kong barely touched $1.8 billion. But this year is already crossed $14 billion. Now, that’s an 8 times jump in just six months. This marks Hong Kong strongest half year since 2021. And the momentum is still building. PwC says 100 IPO could launch this year. Raising over $25 billion? Yes, that is more than what New York Stock Exchange or NASDAQ are currently pacing for. So what’s behind the booth? Beijing gave the green light actively encouraging its stock companies to raise funds overseas, especially through Hong Kong. It is part of a broader push to help domestic firms expand globally. Meanwhile, mainland Chinas own IPO pipeline has slowed down. The approval process for local exchanges, known as a shared listings, has become slower and more restrictive. Pushing companies to seek faster, more flexible capital in Hong Kong. And that’s where the A + H dual listing boom comes in. Mainland firms already listed in China, like CTRL, the world’s largest EV battery maker, are now also listing in Hong Kong to expand globally. Why? Because dual listings let them tap into global liquidity while still accessing Chinas investor base. A dual advantage that’s hard to match. In fact, the top 4A plus H listings this year. The ATL, Chang So Hungry Pharma, Haitham Flavoring and Sawa have raised over 71.8 billion Hong Kong dollars, making up nearly 70% of Hong Kong’s total IPO fundraising so far. At the same time, US China tensions are adding pressure. Chinese companies listed in the US fear getting delisted from Wall Street, and many now see Hong Kong as a safer, more politically neutral option. But this shift isn’t just about fear, it is about smart strategy. In May, Hong Kong launched a Tech Fast Track, a new IPO channel that speeds up listings for AI, biotech, renewable energy and consumer tech companies. The response? Overwhelming currency flexibility matters, too. Hong Kong dollars are freely convertible, unlike Chinas yuan, which means companies raising funds in Hong Kong dollars can actually spend that money abroad without restrictions for global expansion. That’s a game changer. Now let’s talk about investor momentum. Mainland investors. Both retail and institutional are flooding into Hong Kong stocks through Stock Connect Across Border program that lets mainland Chinese investors buy directly on the Hong Kong exchange. And those southbound flows, They just hit an all time high. Now making up nearly half of Hong Kong’s daily stock turnover. That surge of confidence is fueling a full blown rally. Hang Sang Index, Hong Kong’s main stock benchmark, is already up 20% this year, making it one of the top performing markets in the world. Meanwhile, IPOs are getting bigger and bolder battery giants. ATL raised $5 billion in a secondary listing this year, the biggest such deal globally in 2025 so far. And over 200 companies are still in the IPO pipeline, from bubble tea brands like Meek Sway to ride hailing platforms like Salsa. It’s not even just tech anymore. It’s consumer brands, EVs, renewables, AI, and retail. This isn’t just a rebound, it’s a repositioning. And Hong Kong is no longer trying to catch up. It is leading. The global IPO game.
