Hong Kong is on track to become the world’s top city for initial public offering (IPO) fundraising in 2025, with its IPO market expected to maintain a strong momentum in the fourth quarter, according to Deloitte’s latest report.

The global accounting and advisory firm has raised its forecast for Hong Kong’s total IPO fundraising this year to HK$250 billion ($32.2 billion) to HK$280 billion, from a mid-June projection of HK$200 billion. It anticipates that Hong Kong will see more than 80 IPOs launched throughout 2025, with six mega IPOs launched in the first nine months and five more in the pipeline.

Edward Au Chun-hing, southern region managing partner of Deloitte China, said on Tuesday that the US Federal Reserve’s shift to a rate-cutting cycle is likely to prompt overseas capital to seek high-growth investment opportunities across Asia, particularly in the Chinese mainland and the special administrative region markets.

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“This will provide ample market funding, liquidity support, and a more favorable valuation environment for a number of mega-sized IPOs expected to debut in Hong Kong in the fourth quarter,” Au said, adding that he believes more overseas companies will be drawn to the local capital market and emerge as a highlight in 2026.

In the first nine months of the year, Hong Kong is projected to see 66 IPO debuts driven primarily by listings from the consumer, manufacturing, and technology, media, and telecommunications sectors, according to Deloitte. These offerings could raise HK$182.3 billion, a 228 percent surge from the HK$55.6 billion raised during the same period last year.

Robert Lui Chi-wang, southern region offering services leader at Deloitte China, said the strong performance has boosted the Hong Kong market’s valuations. He attributed the robustness to the supportive policies from the China Securities Regulatory Commission (CSRC), which have encouraged leading mainland enterprises to pursue listings in Hong Kong. Lui also cited the streamlined listing procedures for large A-share companies by the Hong Kong Exchanges and Clearing (HKEX) and the Securities and Futures Commission (SFC).

Looking ahead, A+H dual share listings, IPOs from healthcare and pharmaceutical companies, specialist technology companies, and consumer brands, are expected to remain key engines of growth.

The HKEX is currently processing more than 230 active listing applications. Au said he believes the actual number of pending IPOs could be even higher, as some companies may have filed confidentially via the exchange’s dedicated Technology Enterprises Channel.

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The Deloitte report also noted a steady growth in the mainland stock market, with IPO volume and fundraising rising in the first three quarters. The momentum is expected to carry through year-end, driven by tech and new energy firms under supportive national policies.

Hong Kong’s benchmark Hang Seng Index dipped 0.7 percent to 26,159.12 on Tuesday, retreating from a four-year peak of 27,058.03 last week. Meanwhile, Butong Group — parent company of mainland nursery product brand BeBeBus — surged nearly 44 percent on its first day of trading to close at HK$102.50 per share.

Another high-profile listing, Chinese carmaker Chery Automobile, is set to debut on Thursday.

Contact the writer at gabylin@chinadailyhk.com