Financial analysts expect Chinese concept stocks to contribute another wave of fundraising activities on the Hong Kong Stock Exchange.

PDD Holdings, in a filing with the US Securities and Exchange Commission, announced on Wednesday the appointment of Ernst & Young (Hong Kong) as its independent registered public accounting firm for auditing its financial statements and internal controls for 2025. Previously, PDD Holdings audits were conducted by Ernst & Young Hua Ming LLP in Beijing.

Media reports expect PDD Holdings’ switch to a Hong Kong-based auditor may signal preparations for a secondary listing in the city. When companies plan Hong Kong listings, they usually engage local audit firms to comply with regulatory requirements. Alibaba Group Holding and JD took similar steps when pursuing their respective Hong Kong listings.

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The company is the operator of mainland e-commerce platform Temu and currently is listed on the US’ Nasdaq Stock Market in the form of American depositary receipts.

“Significant inflows of institutional and retail funds into the Hong Kong market have created a favorable financing environment for enterprises,” Futu Securities Managing Director Daniel Tse said. “Trends including the A+H listing wave, homecoming of the China-concept stocks, and the Technology Enterprises Channel will attract more companies to accelerate their IPO processes.”

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Global auditing firm PricewaterhouseCoopers also expects large-cap A-share companies, Chinese concept stocks and overseas companies to actively seek to raise funds in Hong Kong.

A report by Goldman Sachs in April said 27 US-listed Chinese firms (including PDD Holdings), with a combined market capitalization of $191 billion, could meet the listing requirements in Hong Kong either by going for a dual-primary or secondary listing. The report added that at least 170 others were at risk of being ejected from American stock exchanges.

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Shares of clinical stage biotech company Leads Biolabs made their debut on the Hong Kong Stock Exchange on Friday, with prices closed at HK$67.1 ($8.55) apiece, 91.7 percent higher than the offering price of HK$35 per share. The company sold 32.054 million “H” shares, whereas 10 percent will be publicly offered in Hong Kong, with a maximum fundraising of HK$1.12 billion. One lot contains 100 shares, and the entry fee is HK$3,535.3.