Hong Kong’s initial public offering (IPO) market has delivered a robust performance this year and is expected to reclaim the title of the world’s top IPO market for the first time in six years.

KPMG, the international accounting firm, released a report on Wednesday, December 10, forecasting that the global IPO market will raise $158.4 billion (S$205.3 billion) across 1,227 listings this year. Proceeds will register an 18% year-on-year increase, while the number of listings will drop 4% from the previous year.

Leading the global market, Hong Kong is projected to secure HK$272.1 billion (S$45.3 billion) through 100 IPOs, representing respective year-on-year surges of 210% and 43%. This will mark the largest fundraising scale in the city since 2022.

The report attributes this Hong Kong IPO boom primarily to policy support and a string of recent mega "A+H" dual listings (simultaneous listings on the Chinese mainland’s A-share market and Hong Kong’s stock market). Notably, Contemporary Amperex Technology Co., Limited (CATL)—the world’s largest electric vehicle battery manufacturer—has completed its A+H dual listing, emerging as the world’s biggest IPO this year.

The two major U.S. stock exchanges rank second and third globally in terms of IPO proceeds, with total fundraising jumping 18% year-on-year. India’s National Stock Exchange and the Shanghai Stock Exchange take the fourth and fifth positions respectively.

As highlighted in the report, Hong Kong’s IPO market has recorded a historic high of 316 listing applications as of December 7 this year, skyrocketing 267% from the end of last year, among which 92 are A+H dual listing applications. Including A-share companies that have publicly expressed their intention to list in Hong Kong, the number of A+H dual listing applications is expected to exceed 100 in the near term, laying a solid foundation for a strong start next year.

David Lau, Head of Capital Markets Group at KPMG China Hong Kong, noted that with continued policy support for innovation and the development of the new economy, 2025 is poised to be a pivotal year for high-tech enterprises seeking listings in Hong Kong, alongside the sustained momentum of A+H dual listings. This will further consolidate Hong Kong’s position as a leading global capital market.

CPA Australia also pointed out recently that Hong Kong’s capital market has staged a recovery this year. As of early December, over 90 new listings have been completed, with total fundraising exceeding HK$260 billion—equivalent to the full-year figure for 2018. With more than 300 companies currently in the queue for Hong Kong listings, the city’s IPO fundraising is forecast to surpass HK$300 billion next year, maintaining its top global ranking.

However, Bloomberg reported that the Securities and Futures Commission (SFC) of Hong Kong and Hong Kong Exchanges and Clearing Limited (HKEX) recently sent a joint letter to IPO sponsors, expressing regulatory concerns over the observed decline in the quality of recent listing applications and certain non-compliant practices.

According to the report, the two regulators issued the letter last Friday (December 5), citing issues such as poor drafting quality of listing documents, failure to respond to regulatory inquiries, and inability to promptly contact personnel responsible for the IPOs. The letter also criticized the unnecessarily lengthy drafts of listing documents—for instance, copying content from other sections into the summary, and providing overly complex descriptions of business models.

The report indicated that market participants are worried about the subpar quality of filing materials submitted by some parties, particularly sponsor institutions. Some practitioners may lack familiarity with relevant regulatory requirements and experience in handling Hong Kong IPO applications.

In an interview with Lianhe Zaobao, Zhou Xian, a Hong Kong financial columnist, noted that the city’s IPO market remained sluggish in the aftermath of the COVID-19 pandemic. In 2023, both the number of new listings and fundraising volume plunged to near 20-year lows, pushing Hong Kong out of the global top three in IPO proceeds—even trailing behind India’s National Stock Exchange. The market did not start to rebound until the second half of last year.

He commented, "Against the backdrop of a sluggish Chinese mainland economy, numerous enterprises have turned their attention to Hong Kong to seek capital, driving the standout performance of the city’s IPO market this year."

Zhou Xian argued that to align with the latest economic trends, "the Hong Kong government should revise listing thresholds—including reviewing the market capitalization and revenue requirements for companies with weighted voting rights (WVRs), and relaxing public float rules for listed companies—to attract more enterprises from diverse regions to list in Hong Kong."

Hong Kong’s initial public offering (IPO) market has delivered a robust performance this year and is expected to reclaim the title of the world’s top IPO market for the first time in six years.

KPMG, the international accounting firm, released a report on Wednesday, December 10, forecasting that the global IPO market will raise $158.4 billion (S$205.3 billion) across 1,227 listings this year. Proceeds will register an 18% year-on-year increase, while the number of listings will drop 4% from the previous year.

Leading the global market, Hong Kong is projected to secure HK$272.1 billion (S$45.3 billion) through 100 IPOs, representing respective year-on-year surges of 210% and 43%. This will mark the largest fundraising scale in the city since 2022.

The report attributes this Hong Kong IPO boom primarily to policy support and a string of recent mega "A+H" dual listings (simultaneous listings on the Chinese mainland’s A-share market and Hong Kong’s stock market). Notably, Contemporary Amperex Technology Co., Limited (CATL)—the world’s largest electric vehicle battery manufacturer—has completed its A+H dual listing, emerging as the world’s biggest IPO this year.

The two major U.S. stock exchanges rank second and third globally in terms of IPO proceeds, with total fundraising jumping 18% year-on-year. India’s National Stock Exchange and the Shanghai Stock Exchange take the fourth and fifth positions respectively.

As highlighted in the report, Hong Kong’s IPO market has recorded a historic high of 316 listing applications as of December 7 this year, skyrocketing 267% from the end of last year, among which 92 are A+H dual listing applications. Including A-share companies that have publicly expressed their intention to list in Hong Kong, the number of A+H dual listing applications is expected to exceed 100 in the near term, laying a solid foundation for a strong start next year.

David Lau, Head of Capital Markets Group at KPMG China Hong Kong, noted that with continued policy support for innovation and the development of the new economy, 2025 is poised to be a pivotal year for high-tech enterprises seeking listings in Hong Kong, alongside the sustained momentum of A+H dual listings. This will further consolidate Hong Kong’s position as a leading global capital market.

CPA Australia also pointed out recently that Hong Kong’s capital market has staged a recovery this year. As of early December, over 90 new listings have been completed, with total fundraising exceeding HK$260 billion—equivalent to the full-year figure for 2018. With more than 300 companies currently in the queue for Hong Kong listings, the city’s IPO fundraising is forecast to surpass HK$300 billion next year, maintaining its top global ranking.

However, Bloomberg reported that the Securities and Futures Commission (SFC) of Hong Kong and Hong Kong Exchanges and Clearing Limited (HKEX) recently sent a joint letter to IPO sponsors, expressing regulatory concerns over the observed decline in the quality of recent listing applications and certain non-compliant practices.

According to the report, the two regulators issued the letter last Friday (December 5), citing issues such as poor drafting quality of listing documents, failure to respond to regulatory inquiries, and inability to promptly contact personnel responsible for the IPOs. The letter also criticized the unnecessarily lengthy drafts of listing documents—for instance, copying content from other sections into the summary, and providing overly complex descriptions of business models.

The report indicated that market participants are worried about the subpar quality of filing materials submitted by some parties, particularly sponsor institutions. Some practitioners may lack familiarity with relevant regulatory requirements and experience in handling Hong Kong IPO applications.

In an interview with Lianhe Zaobao, Zhou Xian, a Hong Kong financial columnist, noted that the city’s IPO market remained sluggish in the aftermath of the COVID-19 pandemic. In 2023, both the number of new listings and fundraising volume plunged to near 20-year lows, pushing Hong Kong out of the global top three in IPO proceeds—even trailing behind India’s National Stock Exchange. The market did not start to rebound until the second half of last year.

He commented, "Against the backdrop of a sluggish Chinese mainland economy, numerous enterprises have turned their attention to Hong Kong to seek capital, driving the standout performance of the city’s IPO market this year."

Zhou Xian argued that to align with the latest economic trends, "the Hong Kong government should revise listing thresholds—including reviewing the market capitalization and revenue requirements for companies with weighted voting rights (WVRs), and relaxing public float rules for listed companies—to attract more enterprises from diverse regions to list in Hong Kong."