Hong Kong’s capital markets have demonstrated remarkable resilience, emerging as the world’s top destination for initial public offerings (IPOs) in the first seven months of 2025, Hong Kong‘s secretary for financial services and the Treasury said on Tuesday

Christopher Hui Ching-yu said the number of IPOs in Hong Kong this year has already surpassed its annual fundraising totals for each of the past three years, with 53 new listings raising HK$127 billion ($16.2 billion), a staggering sixfold year-on-year increase.

Hong Kong’s exceptional performance comes as global IPO markets saw only a modest 10 percent growth in capital raise in the first half of 2025, with deal numbers declining 5 percent worldwide, Hui said.

READ MORE: HK tops global IPO rankings with 42 new listings in H1

Seven dual-listed A+H share companies accounted for HK$77 billion of total fundraising, showcasing Hong Kong’s pivotal role as a bridge between the mainland and international capital markets. Meanwhile, the healthcare sector emerged as a standout performer, with 10 biotech firms raising HK$16.3 billion. The sector’s strong momentum is reflected in the Hang Seng Biotech Index’s impressive 90 percent surge this year.

Hong Kong’s market has drawn increasing international attention, with Southeast Asian firms across sectors — including food and beverage, and industrial materials — selecting the city as their preferred listing venue, Hui said. The IPO pipeline reveals a healthy mix across industries that include technology, media, telecom, renewable energy, consumer goods, and financial services.

Hong Kong’s robust IPO market performance stems not from short-term market sentiment, but from years of sustained institutional innovation and policy support, Hui said. Market reforms implemented since 2018 continue to bear fruit. August’s comprehensive IPO pricing reforms introduced new allocation requirements and improved retail participation mechanisms, further strengthening market stability.

Investor participation tells an equally compelling story. The first half of 2025 saw robust engagement from North American pension funds, Middle Eastern sovereign wealth vehicles, and European private equity firms. Retail investors demonstrated particular enthusiasm, with several offerings seeing multiples of oversubscription. This balanced participation from both institutional and individual investors has created exceptional liquidity.

READ MORE: Chan: Hong Kong top IPO market globally year-to-date

The vibrant capital markets activity is contributing significantly to Hong Kong’s economic growth, Hui said. Preliminary estimates show GDP expanding 3.1 percent year-on-year in the second quarter, with financial and professional services leading the growth.

As the city continues to refine its regulatory framework and enhance market infrastructure, industry observers predict Hong Kong will maintain its competitive edge in attracting high-quality global issuers and long-term capital.

Looking ahead, market participants anticipate several mega-listings in the pipeline across technology and consumer sectors that could further boost annual fundraising totals, Hui said. With over 210 active listing applications currently under review and continued strong investor interest, Hong Kong appears well-positioned to sustain its leadership position in global capital markets through the year and beyond.

Contact the writer at mikegu@chinadailyhk.com