San Francisco Frontiers - Hong Kong to regain IPO crown this year, say PwC and Deloitte

The Chinese financial hub's capital market has rebounded strongly this year, with dozens of Chinese companies piling into the city to raise overseas capital despite regulatory pressure from Beijing and uncertainty over its national security laws.

PricewaterhouseCoopers (PwC) said its statistics suggest nearly 100 companies will raise at least HK$200 billion ($25.5 billion) in Hong Kong this year.

It said Hong Kong's IPO wave has benefited largely from policy support from the Chinese government and optimised listing rules by Hong Kong regulators that include streamlining approval processes.

"The improved market liquidity and rising international investor demand for core Chinese assets also drove market activity," PwC's Hong Kong capital markets leader Eddie Wong said in a note.

The Hong Kong stock exchange welcomed 44 IPOs by the end of June, according to PwC.

"We expect 2025 to be the most active fundraising year for IPOs in the past four years," said Diamantina Leong, PwC's Hong Kong capital markets services partner.

PwC said total proceeds raised in Hong Kong jumped 701 percent to HK$107.1 billion (US$13.7 billion) compared to the same period last year.

In comparison, the New York Stock Exchange and Nasdaq have raised HK$55.3 billion ($7.0 billion) and HK$71.9 billion ($9.2 billion) in IPOs respectively so far this year, it said.

Hong Kong's IPO boom is expected to continue into the first half of next year, Wong told reporters at a presentation.

Data from the Hong Kong stock exchange showed it is processing more than 170 listing applications.

"We expect strong momentum to continue, supported by several mega deals," Wong said.

Many of the world's biggest fund-raisings by Chinese companies, including battery giant CATL, pharmaceutical firm Jiangsu Hengrui and soy sauce maker Foshan Haitian, kept up the buzz in Hong Kong's capital markets.

Consulting firm Deloitte also forecast in a June report that Hong Kong would be the IPO leader this year, although its analysts warned that "adverse geopolitical or macroeconomic disruptions" could constrain optimism.

Chinese e-commerce titan Shein is switching to Hong Kong to complete its debut after failing to list in New York and London, Bloomberg reported this year.

Hong Kong hopes to become the preferred listing platform for international companies, "especially those that find it challenging to access capital markets in the US or Europe", the city's financial secretary Paul Chan said last month.

Q.Taylor--SFF