Financial analysts highlighted the positive effect of the growing “A+H” listing trend, which could help Hong Kong claim the position as the world’s top fundraising center this year.

However, an initial public offering sponsor advised Chinese mainland enterprises to prepare thoroughly before listing in the city.

The Hong Kong Stock Exchange welcomed another company with dual listings of A shares and H shares — Foshan Haitian Flavouring & Food Co — whose debut occurred on Thursday.

READ MORE: A+H listing pipeline may help HKEX reclaim No 1 IPO crown, analysts say

The major condiment manufacturer — which has publicly listed on the Shanghai Stock Exchange — successfully raised HK$10.1 billion ($1.29 billion) by issuing 279 million H shares.

The listing of Haitian represented the latest example of the increasingly popular “A+H” fundraising model. In May, Shenzhen-listed battery giant Contemporary Amperex Technology raised over HK$41 billion, making it the world’s largest equity offering to date in 2025. Shanghai-listed Jiangsu Hengrui Pharmaceuticals followed with a HK$9.89 billion offering.

Haitian Chairwoman Cheng Xue called the listing on the Hong Kong Stock Exchange a major milestone for the company.

“We will continue to provide returns to investors through business development and contribute to the prosperity of the Hong Kong market. We will take root in the mainland market, adhere to long-term planning, go global, and accelerate the realization of the goal of serving customers globally,” Cheng said at the listing ceremony.

Haitian’s share price closed at HK$36.50 per share on Thursday, up 0.55 percent from the offering price of HK$36.30. The stock traded with a total turnover of about HK$2.88 billion during the day.

The public share offer of Haitian was oversubscribed more than 917 times. With an allocation rate of just 5 percent for one lot, investors needed to apply for 80 lots to secure one lot — each lot containing 100 shares.

Jacky Lai, a spokesperson for EY Hong Kong Capital Market Services, said: “The Hong Kong IPO market is expected to gain further momentum, driven by A-share companies seeking listings in Hong Kong. Most of the companies in the current ‘A+H’ dual listing pipeline are leaders in niche industries such as new consumption and hard technology enterprises, presenting a scarcity value in both Hong Kong and global capital markets.”

Major firms like China International Capital Corp, Goldman Sachs, and Morgan Stanley served as joint sponsors for Haitian’s IPO.

ALSO READ: Dual listings on HK stock exchange flavor of season

However, Wang Shuguang, a member of the CICC Management Committee, said mainland enterprises must be well-prepared before applying for an H-share IPO.

“I personally think that not all A-share listed companies are suitable for issuing H-shares in Hong Kong because the volatility of the Hong Kong capital market will be high, and Hong Kong investors are very selective in choosing investment targets,” he said during a sideline interview.

“Mainland companies must grasp market trends when mulling the A+H fundraising model,” Wang said.

He added that the main purpose of listing in the Hong Kong capital market is to connect mainland companies with global capital, and “bring more resources for these companies to conduct global business expansion”.

Contact the writer at oswald@chinadailyhk.com