As of December 18, the Hong Kong stock market has welcomed 102 companies for listing, with the total number of new listings expected to exceed 110 for the year, marking a significant increase from 70 new listings in 2024. The net proceeds raised reached HKD 238.2 billion, representing a substantial year-on-year growth of 246%.
In 2025, the Hong Kong stock IPO market bid farewell to two consecutive years of sluggish performance and ushered in a strong recovery, returning to the center stage of the global capital market with distinct characteristics such as 'increased volume and scale, concentration of leading enterprises, and innovation-driven growth'.
Leveraging its strong appeal for large-scale projects and ongoing benefits from reforms in listing regulations, the Hong Kong Stock Exchange (HKEX) surpassed the HKD 200 billion threshold for new share offerings for the first time in four years, far exceeding the projected USD 20.5 billion raised by the New York Stock Exchange, and firmly securing the top position among global stock exchanges in terms of fundraising. From industry structure to market performance, from policy support to capital flows, the market demonstrated multiple positive signals throughout the year, injecting robust momentum into the long-term development of Hong Kong's equity market.
2025 Hong Kong Stock Market IPO Overview: Growth in Volume and Scale, Led by Industry Leaders
According to authoritative institutions such as Deloitte and EY, as of December 18, Hong Kong's stock market has welcomed 102 companies to list, and the total number for the year is expected to exceed 110 IPOs, representing a substantial leap from the 70 IPOs in 2024. The net proceeds raised amounted to HKD 238.2 billion, marking a significant year-on-year increase of 246%.
The core driving forces behind the market recovery came from two key dimensions:
First, the successive completion of ultra-large-scale IPO projects. Throughout the year, eight new listings raised over HKD 10 billion each, collectively raising HKD 142.469 billion, accounting for 52.75% of the total funds raised for the year, showcasing a highly pronounced headquarter effect. Notably, CATL, the leader in new energy batteries, set a record for the largest global IPO of the year with proceeds of HKD 41.006 billion. Zijin Gold International, Sany Heavy Industry, and Seres also ranked among the top ten global IPOs. A+H dual-listing projects by prominent A-share companies like Hengrui Pharma, Sanhua, and Haitian similarly made substantial contributions. Over 20 A-share companies went public in Hong Kong during the year, raising more than HKD 170 billion in total.
Second, continued release of benefits from reforms in the listing system. Measures implemented by the HKEX, including simplifying the listing approval process, establishing specialized listing regimes for technology companies (Chapter 18C), and optimizing the listing pathway for biotech firms (Chapter 18A), effectively stimulated the listing enthusiasm of innovative enterprises. In particular, the number of biotech companies listed under Chapter 18A surged from 4 in 2024 to 14, representing a 250% increase, becoming a significant source of market vitality.
On the funding side, the performance was equally robust. The combination of a global low-interest-rate environment and Hong Kong’s valuation advantage drove continuous inflows of southbound capital and international investment. In 2025, cumulative net purchases by southbound funds reached HKD 320 billion, providing ample liquidity to the IPO market. Meanwhile, foreign capital funds, including U.S.-based funds, began to return and subscribe to Hong Kong IPOs, forming a powerful capital synergy. In terms of sector distribution, industries such as industrial and retail consumption (new energy vehicles, advanced manufacturing), healthcare, and technology, media, and telecommunications emerged as the mainstay sectors for IPOs, reflecting the capital market's preference for high-growth, high-certainty fields.
Nearly 70% of new stocks surged on their debut! Investors earned up to nearly HKD 12,000 per lot, with pharmaceutical stocks performing strongly.
The 2025 Hong Kong stock IPO market exhibited notable structural divergence, with nearly 70% of new stocks posting gains on their first day. High-quality, scarce assets attracted enthusiastic capital pursuit, with remarkable first-day gains and returns. According to market data, 16 new stocks recorded cumulative increases exceeding 100%, generally characterized by 'low allotment ratios and high popularity,' reflecting the market's extreme enthusiasm for quality listings.
In the list of gainers, $GOLDEN LEAF INT (08549.HK)$ topped the list with a 330% increase, $HIPINE (02583.HK)$ 、 $INNOGEN-B (02591.HK)$ both achieved a 200% increase. In terms of returns, $CF PHARMTECH (02652.HK)$ ranked first with nearly HKD 12,000 in per-lot gains, $DUALITYBIO-B (09606.HK)$ per-lot gains also exceeded HKD 11,000.
Looking at the characteristics of the rankings, the most prominent star is undoubtedly the unprofitable biotech enterprises listed under Chapter 18A of the Hong Kong Stock Exchange (i.e., Pharma B shares). A total of 14 companies listed under Chapter 18A not only increased by 250% compared to 2024 but also took central positions in both the gains and per-lot return rankings, becoming the 'engine' driving market profitability. Their explosive performance was not accidental but rather the inevitable result of policy support, industry cycles, and capital resonance.
From a policy perspective, the continuous optimization of Chapter 18A regulations by the Hong Kong Stock Exchange has provided favorable conditions for Pharma B shares. In 2025, the exchange further streamlined the listing process for biotech firms, while the new IPO issuance mechanism introduced in August precisely supported these companies—reducing the minimum public offering proportion to 10%, effectively controlling the retail subscription quota, and avoiding share price fluctuations caused by 'quick flips' after winning allocations. This created opportunities for long-term capital involvement. Silverno Pharma-B became the first beneficiary under the new mechanism, oversubscribed 5,341 times, surging 206.48% on its debut day, fully validating the effectiveness of the regulatory improvements.
From an industry standpoint, innovative pharmaceuticals are in a phase of rapid growth, driven by policy encouragement and market demand. The 18A-listed companies in 2025 focused on cutting-edge fields such as cancer treatment, gene editing, rare disease drugs, and GLP-1-based diabetes and weight-loss medications, characterized by high technical barriers and vast growth potential. For example, Medzen-B targeted innovative therapies for rare diseases and major illnesses, leveraging differentiated R&D pipelines to attract institutional investments. Its lot allocation rate stood at just 0.8%, and its cumulative post-IPO rise exceeded 11 times.
However, investors should be wary of the investment risks associated with Class B pharmaceutical stocks. These companies are generally unprofitable, and their performance depends on research and development progress and product approvals. If core pipeline developments fail or market competition intensifies, it may lead to significant stock price volatility.
Outlook for Hong Kong IPO Market in 2026: Continued Activity, New Opportunities Across Multiple Sectors
Looking ahead to 2026, multiple authoritative institutions collectively forecast a bullish outlook for Hong Kong's IPO market. They believe that, supported by policy incentives, capital inflows, and corporate listing demands, the market will sustain the active momentum seen in 2025, achieving further breakthroughs in both volume and value.
In terms of listing scale, UBS Group expects Hong Kong to welcome 150-200 new listings in 2026, with funds raised potentially exceeding HKD 300 billion, maintaining its position as the top global IPO fundraising market. Deloitte predicts approximately 160 new listings for the year, raising over HKD 300 billion, including seven large-scale IPOs each raising more than HKD 10 billion. The key factor supporting this forecast is the robust pipeline of listing candidates—currently, the Hong Kong Stock Exchange is processing over 300 listing applications, including 92 A+H dual listings, ensuring ample project supply for the 2026 market.
From an industry perspective, four key sectors will become the focal points of Hong Kong's IPO market in 2026:
First, the specialized technology sector (Chapter 18C), with hard tech tracks such as autonomous driving, semiconductors, and artificial intelligence, will attract greater investor attention. The number of Chapter 18C company listings is expected to see substantial growth in 2026 compared to 2025.
Second, the healthcare sector, where innovative drug developers, medical device manufacturers, and healthcare service providers will maintain high enthusiasm for listings. Companies under Chapter 18A with core technologies will remain a market focus.
Third, the consumer sector, with quality companies in affordable consumption, new tea beverages, and gold consumption continuing to list on the Hong Kong market, meeting investor demand for stable consumption-oriented investments.
Fourth, international enterprises and the return of Chinese概念股 (U.S.-listed Chinese companies). Hong Kong’s valuation advantage and status as an international financial center will attract more international firms and Chinese概念股 to list or relist.
From a capital flow perspective, the trend of foreign capital returning to Hong Kong will strengthen further. Currently, Hong Kong’s price-to-earnings ratio is below 20x, significantly lower than the approximately 28x P/E ratio of U.S. stocks, and the allocation of funds to Greater China projects remains relatively low. With the Federal Reserve initiating a rate-cutting cycle, more U.S.-based and other foreign funds are expected to increase their participation in Hong Kong’s IPO market. Meanwhile, continuous inflows from Southbound funds will continue to provide stable liquidity support to the market.
Summary
The year 2025 marks a 'recovery year' for Hong Kong's IPO market, with both volume and value rising amid the release of reform dividends and the clustering effect of high-quality enterprises. The explosive performance of pharmaceutical B-shares has injected strong profit-making effects into the market.
Looking ahead to 2026, as the pipeline of listing projects gradually materializes and liquidity conditions continue to improve, Hong Kong's IPO market is expected to see more comprehensive activity. Multiple sectors such as technology, healthcare, and consumer goods will collectively drive market vitality, further solidifying Hong Kong's position as an international financial hub. For investors, while seizing structural opportunities, it is essential to balance risk differences across sectors and focus on high-quality targets with core competitiveness to achieve steady returns in both IPO subscriptions and secondary market investments.
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