Hong Kong IPOs are back with a bang

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. 

10%+

Tokyo can’t match Hong Kong when it comes to IPOs, but M&A is a different matter. For this first time in 35 years, Japanese companies were involved in more than 10% of all global mergers and acquisitions – racking up US$215 billion worth of deals in the first half of 2025 – three times as much as a year earlier.

Insight: Southeast Asia is emerging as ground zero for microplastic consumption, with Indonesia, Malaysia, the Philippines, and Vietnam leading global ingestion rates. Now found in fish, water, and even placenta, microplastics pose serious risks to long-term liver function, brain development, and cognitive health. The root cause? Widespread plastic pollution and entrenched reliance on single-use packaging, particularly among low-income communities.

Impact: Left unchecked, the microplastics crisis could evolve from an environmental issue into a full-blown public health emergency. While policymakers across the region are ramping up recycling initiatives and considering new regulations, structural issues — like affordability, public awareness, infrastructure gaps, and weak enforcement — mean progress is slow. Tackling the plastic problem in Southeast Asia will require more than clean-up campaigns; it demands a rethink of the entire consumption model, with attention being paid to the economic realities driving single-use dependence.  

Insight: Lawson’s, one of Japan’s big convenience store chains, is planning to use the car parks in front of some of its thousands of nationwide shops as camping sites. At a time when tourists are flooding into the country and hotel rooms are hard to find, guests will be able to park their camper van or vehicle in the parking lot from 6pm to 9am the next morning, use the store’s toilets, access power and dump their garbage. And all for just JPY3,000 (USD20) per night.

Impact: Talk about a smart brand extension. The Japanese already value their ‘konbinis’ for being on pretty much every corner, more or less continuously open and staffed. Clearly it makes sense to push as much volume as possible through this high fixed cost base; and the car park and toilets are probably the store’s most underutilized real estate. Renting them out overnight is therefore both simple and clever. Plus, it meets a real need during the current (over)tourism boom. The end result is likely to be an even deeper appreciation of the konbinis by a grateful nation. 

The first half of 2025 featured an increase in settlements between corporates and activist investors like Elliott Management – and, surprisingly, more companies are doing deals before the activist even goes public with its demands. While this is mostly a US trend so far, it is likely to spread to Asia as the influence of activist shareholders continues to grow globally – and corporate boards need to devise defense strategies.

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