The world’s “big four” accounting firms all expect IPO fundraising in Hong Kong to hit at least HK$100 billion ($12.85 billion) this year, and perhaps as much as HK$160 billion, as a pipeline of Chinese mainland tech firms and overseas companies awaiting listing approval fuel capital-market optimism.
PwC has provided the most bullish outlook, estimating fundraising between HK$130 billion and HK$160 billion, suggesting Hong Kong could claw back to the global top three IPO markets. Ernst & Young forecasts HK$120 billion, while KPMG projects between HK$100 billion to HK$120 billion for the year.
Deloitte on Wednesday anticipates that about 80 IPOs will raise between HK$130 billion to HK$150 billion in 2025. The firm identifies several key sources driving the fundraising amount, including large-cap A-share issuers, enterprises from artificial intelligence (AI), the life science and healthcare sectors, and companies from the Middle East and the Association of Southeast Asian Nations (ASEAN).
READ MORE: Deloitte: Hong Kong set for 4th place in global IPO rankings
The international financial hub recorded 15 IPOs raising HK$18.2 billion in the first quarter, compared to 12 IPOs raising HK$4.7 billion in the same period last year.
In global IPO rankings for the first quarter, Hong Kong’s bourse settled for fourth place, trailing the Tokyo Stock Exchange, which secured third place. US exchanges maintained the dominance, with the Nasdaq Stock Market and the New York Stock Exchange claiming the top two positions.
India’s National Stock Exchange rounded out the top five. The Chinese mainland’s Shenzhen and Shanghai exchanges ranked ninth and 10th respectively.
According to the Hong Kong Exchanges and Clearing website, industrial supply chain technology and service provider JD Industrials, an independent unit of its parent, JD, and mainland language processing technology developer Unisound AI Technology filed their respective IPO applications in March.
Earlier, Contemporary Amperex Technology, the world’s largest electric-vehicle battery producer, submitted IPO applications. The IPO is expected to raise at least $5 billion, potentially becoming Hong Kong’s largest IPO in five years.
Robert Lui, southern region Hong Kong offering services leader of the capital market services group at Deloitte China, said that the rebound of the Hong Kong IPO market in the first quarter was supported by improved market valuations and liquidity.
“This shows more great results from reforms and collaboration between mainland and Hong Kong authorities,” he added.
Edward Au, southern region managing partner at Deloitte China, said, “Regulators continue to cooperate with stock exchanges across a wide range of jurisdictions, particularly in ASEAN and the Middle East, while enhancing Connect programs and advancing capital market reforms, including the potential plan to streamline listing reviews and lower listing thresholds for dual primary and secondary listings.”
The positive sentiment came as both Hong Kong’s and the mainland’s financial regulators have signaled a blizzard of hefty support to lower fundraising barriers for mainland firms seeking Hong Kong listings.
Hong Kong’s 2025-26 Budget introduced a “technology enterprises channel” to assist specialist technology and biotechnology companies, “especially those listed in the mainland”, to optimize IPO application processes and expand businesses to overseas markets.
The city’s bourse operator and the Securities and Futures Commission also have ramped up efforts to boost liquidity and quicken IPO applications for mainland firms.
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These include a proposal, with a market consultation period that ended March 19, to reduce the minimum public float requirement for firms listed on both the mainland’s and Hong Kong’s stock exchanges.
Contact the writer at tianyuanzhang@chinadailyhk.com
