Hong Kong has emerged as the world's leading initial public offering market in the first half of 2025, achieving a remarkable seven-fold increase in funds raised compared to 2024.
According to KPMG's mid-year review, the city raised HK$107.1 billion through 42 listings, reflecting a 70-percent surge in funds and a 40-percent rise in deal volume.
The IPO of the world's largest electric vehicle battery manufacturer alone raised HK$41 billion, marking it as the largest global IPO of the first half of 2025 and the biggest Hong Kong IPO since 2021.
With over 200 active Main Board applications, Hong Kong's IPO momentum is set to continue into the second half.
KPMG added that the global IPO market raised US$60.9 billion (HK$478.06 billion) across 544 deals, a 5-percent increase in funds despite a 6-percent drop in deal volume.
In contrast, US exchanges saw an 8-percent decrease in fundraising, while the Shanghai Stock Exchange and National Stock Exchange of India ranked fourth and fifth, respectively.
Paul Lau Kwok-yin, head of capital markets and professional practice at KPMG China, noted challenges from US trade policies but expressed optimism for Hong Kong's growth, emphasizing its role as a bridge between East and West.
Louis Lau, partner and head of the Hong Kong Capital Markets Advisory Group of KPMG China, said the A-share market in China raised 53.7 billion yuan (HK$59.07 billion) across 61 deals, a 5-percent decrease in funds but a 15-percent increase in deal volume compared to 2024.
Ten Real Estate Investment Trusts debuted, raising 16.3 billion yuan, accounting for 30 percent of total A-share proceeds.
Recent reforms aim to support Greater Bay Area companies listing in Hong Kong and on the Shenzhen Stock Exchange through "H+A Listings."
Additionally, the Shanghai Stock Exchange has announced a growth tier for the SSE Science and Technology Innovation Board Market to accommodate unprofitable tech companies.
To bolster early-stage technology firms, Hong Kong launched the Technology Enterprise Channel, streamlining the listing process for specialist technology and biotech companies.
Irene Chu Ngar-yee, partner and head of Hong Kong Capital Markets Group of KPMG China, highlighted the diversification of Hong Kong's capital markets, with high-tech and biotech sectors emerging as growth pillars.
She said the launch of TECH aims to simplify regulatory navigation for potential applicants.
With 219 IPO applicants in the pipeline, including 210 on the Main Board, Hong Kong is well-positioned to maintain its leadership throughout the year, underscoring its commitment to being a top fundraising platform for innovators.
ANSON LUK
