Hong Kong’s IPO juggernaut projected to raise up to US$45 billion in 2026: KPMG
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Hong Kong’s IPO juggernaut projected to raise up to US$45 billion in 2026: KPMG
08 mins
Hong Kong’s initial public offering (IPO) market is expected to raise up to HK$350 billion (US$45 billion) next year, extending the momentum built this year on the back of mainland Chinese public firms and the technology sector.
KPMG forecast on Wednesday that between 180 and 200 applications would drive the fundraising, representing a 28.7 per cent jump in total value and as much as a 100 per cent leap in deal numbers compared with this year.
“We also expect 2026 to be a pivotal year for hi-tech listings, further solidifying Hong Kong’s position as a global capital markets leader,” said Louis Lau Tai-cheong, partner and head of Hong Kong capital markets group at KPMG in China.
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The auditing and consulting firm estimated that 100 newcomers to Hong Kong’s stock exchange this year garnered HK$272 billion – the highest since 2022 – cementing the city’s place at the top of global markets.
KPMG estimates that 100 newcomers to Hong Kong’s stock exchange this year garnered HK$272 billion. Photo: Jelly Tse alt=KPMG estimates that 100 newcomers to Hong Kong’s stock exchange this year garnered HK$272 billion. Photo: Jelly Tse>
Much of the 2025 performance was driven by Beijing’s encouragement for mainland-traded companies to pursue offshore listings. The so-called A+H listings raised HK$136.5 billion across 17 deals, according to KPMG data.
As of December 7, KPMG saw 92 active A+H listing applications and a record 316 cases in the queue, putting Hong Kong on track to rank among the world’s top three markets next year.
New economy companies will remain another source of activity. Innovation, biotech, new energy and new materials collectively raised HK$158.7 billion in Hong Kong this year, accounting for more than half of the full-year estimate. That share was expected to hold steady next year, said Irene Chu, partner and head of technology and new economy at KPMG in China.
This year also saw 14 pre-revenue biotech listings, up from four in 2024, and three specialist technology IPOs, the same as last year. The increase was in line with the rise of Chinese pharmaceutical firms’ licensing deals and growing enthusiasm for artificial intelligence and robotics.
Asked whether the recent dazzling stock performance of Shanghai-listed Chinese semiconductor firm Moore Threads Technology might divert funds from Hong Kong, Chu said the city remained attractive for companies targeting overseas markets.
EY last month forecast that Hong Kong’s IPO fundraising would grow steadily to HK$320 billion from about 180 listings in 2026.
The consultancy estimated that total proceeds for 2025 would reach HK$280 billion, up 218 per cent from last year and marking the city’s highest level in four years. Mainland firms accounted for more than HK$170 billion.
As of late November, more than 170 A-share listed companies or their subsidiaries had announced plans to float in Hong Kong, with 19 already completing their listings, according to EY.
“We expect market conditions in 2026 to remain broadly stable,” said Jacky Lai, EY’s Hong Kong capital market services spokesperson, at a briefing on November 27. He said the market would benefit from several positive factors, including the return of international long-term capital and China’s ongoing economic transformation, which continued to produce a steady pipeline of high-quality listing candidates seeking funds to upgrade and reposition their businesses.
Leading mainland Chinese companies in niche areas like biotechnology, AI and semiconductors were expected to underpin a number of sizeable deals, Lai added. “There should continue to be a reasonably healthy cohort of larger, higher-quality companies choosing to list in Hong Kong,” he added.
EY said the Hong Kong stock exchange’s relaxed listing requirements for specialist technology and biotech firms, including confidential filings – together with reforms to IPO pricing and allocation that raised the retail cap in oversubscribed deals – encouraged more listings and improved debut performance. Of the 36 IPOs since the rule changes in August, only six fell below their offer price, with an average first-day gain of 38 per cent, while the proportion of shares trading below issue price on debut dropped to a five-year low.
However, Lai cautioned that challenges remained, including persistent US-China tensions and a slowdown in China’s economic growth.
Liquidity in Hong Kong could also come under pressure next year as cornerstone investors’ lock-up periods expire, potentially prompting sell-offs and competition from follow-on offerings, EY said. Even so, potential US interest-rate cuts and continued southbound inflows from mainland investors were expected to lend support to market liquidity, it added.
