IPO fundraising soars sevenfold to $76b

Hong Kong's initial public offering market has raised more than HK$76 billion so far this year, up more than seven times the amount for the same period last year, says Financial Secretary Paul Chan Mo-po.

This came after the city’s hosting of thus far the world's largest new listing for 2025 – the debut of battery giant Contemporary Amperex Technology (3750) last week.

In an online post, Chan noted that the figure is already close to 90 percent of the total raised through IPOs for all of 2024.

He added that deepening ties with the mainland remain a key advantage for Hong Kong's long-term development.

He also pushed back against concerns from some ratings agencies that have expressed negative views on mainland China's economic and fiscal outlook, and cited Hong Kong’s close economic links with the mainland to justify similar ratings actions on the city.

Chan said objective facts and data show that China's economy remains resilient despite global uncertainties, and that the country has ample policy tools and room to navigate and mitigate various risks.

Chan added that China, amid current geopolitical challenges, remains a key driver of global growth by maintaining a stable policy environment, sticking to opening-up, and improvement in technological innovation, green transition and the digital economy.

CATL, which debuted on Tuesday, raised a total of HK$41 billion through its Hong Kong IPO after it fully exercised its over allotment option.

In other IPO news, China's largest condiment maker Foshan Haitian Flavouring and Food Company has passed the listing hearing for its Hong Kong IPO.

The Shanghai-listed company was earlier rumoured to be looking at raising around US$1 billion (HK$7.8 billion).

Also, three mainland companies filed for a listing in Hong Kong on Friday.

They include Elpiscience Biopharmaceuticals, which focuses on developing next-generation cancer therapies, Freetech (Zhejiang) Intelligent Technology, which specialize in intelligent driving solutions, and Tencent-backed (0700) Shenzhen SDMC Technology, which develops artificial intelligence-powered automation systems and solutions for the home.

CICI CAO