Insight: Hong Kong’s IPO market has staged an impressive comeback in the first half of 2025, raising over HK$107 billion (US$14 billion). Not only is this a sevenfold increase from the same period last year; it also outpaced both Nasdaq and the New York Stock Exchange for the first time since 2019. Fueling this revival is a confluence of factors, including a boom in ‘A’ share + ‘H’ share listings, increasing international investor appetite, and supportive policies from Beijing.
Impact: As – still – Asia’s leading international financial hub, Hong Kong stands to benefit from rising political and policy uncertainties in the West – and nowhere is this showing up more clearly than in the number of new listings it is attracting. For Chinese companies, the city remains the go-to destination for gaining overseas capital exposure; for global investors, it offers access to China’s dynamic, yet otherwise tightly controlled, domestic sectors. There are risks, however: a further intensification of the US-China rivalry and the potential decoupling of its dollar peg loom large. The city's ability to maintain regulatory credibility, foster market innovation, and navigate the shifting sands of great power competition will be crucial in shaping its long-term trajectory.