Hong Kong recorded 42 initial public offerings in the first half of this year, raising over HK$107 billion ($13.63 billion) -- about 22 percent higher than the full-year figure for 2024, and clinching the top spot in IPO fundraising worldwide -- Financial Secretary Paul Chan Mo-po wrote in his Sunday blog.

He said about 200 IPO applications, including those from enterprises in the Middle East and Southeast Asia, have been received to date, doubling the figure at the start of the year.

The increase reflects a growing appetite among companies to accelerate their listing plans amid the market rally, while demonstrating the effects of the special administrative region’s promotional efforts targeting both Chinese mainland and international audiences.

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The stock market’s benchmark Hang Seng Index had surged 20 percent in the first six months of 2025, putting on more than 4,000 points -- its largest first-half points gain on record.

Innovation has been a catalyst of the local bourse’s strong performance, with exchange-traded products (ETPs) tied to a variety of asset classes having emerged as a vital force in supporting market liquidity in recent years, Chan said.

The SAR has more than 210 ETPs listed so far, with assets under management reaching nearly HK$510 billion as of May -- a 30-percent increase compared to 2020. Daily average turnover for these products had surged fivefold during the same period to about HK$40 billion.

The ETP market has maintained robust growth despite the choppy investment sentiment in the past few years, Chan said, highlighting that its share of total market turnover had risen from below five percent five years ago to about 17 percent in the first five months of 2025.

ETPs, which track a wide variety of assets, including equities, fixed income, commodities, currencies, and digital assets, have injected both vitality and liquidity into Hong Kong’s capital markets, and served as a “liquidity buffer” during market volatility, the finance chief said.

The continued innovation in the ETP market has brought growth opportunities, and supported evolving investor needs, he added.

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Moreover, Hong Kong has made progress in exchange-traded funds (ETFs) -- the most widely recognized category in ETPs. For instance, the world’s fifth-largest ETF, listed in the United States, cross-listed in Hong Kong in February this year to expand its investor base and boost liquidity.

Chan said Hong Kong Exchanges and Clearing, which runs the city’s bourse, is promoting the listing of various ETFs to attract investors, while channeling capital toward sectors that serve long-term economic growth.

To further promote Hong Kong’s financial markets, Chan will visit Seoul, South Korea, later this week. He will meet with local institutional investors, representatives of fund sectors, and financial firms to present Hong Kong’s strengths in IPOs, ETPs and digital assets.

South Korean investors’ interest in the SAR is growing, he said, pointing out that their investment in Hong Kong equities had hit a three-year high in February.

Contact the writer at irisli@chinadailyhk.com