Hong Kong has regained the much-coveted crown as the world’s top venue for initial public offerings (IPOs) over the first half of the year, as the city’s stock exchange operator reported what its CEO describes as the “best-ever half-yearly revenue and profit”.
Hong Kong Exchanges and Clearing (HKEX) is currently processing nearly 230 new listing applications, with “many more issuers getting in touch”. After HKEX rolled out in May a dedicated-listing program and a new confidential filing option to facilitate floats of specialist technology and biotechnology companies, about 50 firms have filed their respective IPO applications, HKEX CEO Bonnie Chan Yiting said at a news conference on Wednesday in Hong Kong.
Brokerage firms have joined the chorus of optimism that the bourse operator could continue its momentum, supported by a rising market appetite for nondollar-denominated assets and more active participation from both Chinese mainland and international investors.
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HKEX posted a 39 percent growth in profit to a record HK$8.52 billion ($1.09 billion) over the first six months of 2025. Revenue and other income for the period also jumped 33 percent to a record HK$14.1 billion, the company said in a Stock Exchange filing on Wednesday.
The financial hub is sharpening its edge as the preferred fundraising venue for Chinese mainland companies, with increasing interest from international issuers, and its status as a go-to destination for global investors looking for alternative products apart from dollar-denominated assets, Chan said.
About 44 enterprises have made their debuts in Hong Kong over the first half, with total funds raised hitting HK$109.4 billion — more than eight times that in the same period in 2024 and marking the strongest half-year performance since 2021. This includes the blockbuster listing of mainland battery giant Contemporary Amperex Technology, the largest-ever globally since 2023.
“Southbound trading of the Stock Connect program now accounts for roughly 23 percent of Hong Kong market’s average daily turnover, while institutional investors, including those from local, Middle East, Southeast Asia, Europe and United States (US), also have their fair share of contribution,” she said.
Chan also highlighted the renewed interest of overseas investors in IPOs, with long-term funds joining the deal as cornerstone investors.
The growing investor participation also translates into record-breaking trading volume. During the first half, headline average daily turnover rocketed 118 percent to HK$240.2 billion. In July alone, the average daily trading turnover hit HK$263.0 billion.
Even during the recent three sessions where the black rainstorm warning signal was hoisted, the average daily trading turnover of each session exceeded HK$200 billion, Chan said.
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JP Morgan attributed the expectation-beating performance to a significant rebound in Hong Kong equity trading volume over the first half, which also shows signs of robust growth in the third quarter. Although seasonal dynamics may be a partial contributing factor, the research house expects the strong momentum to continue, riding high on sustained market liquidity and steady southbound capital flows.
Morgan Stanley and Citibank shared the rosy outlook for the HKEX, issuing overweight and buy ratings respectively.
Boosted by the better-than-expected earnings, share of HKEX rose 1.7 percent to close at HK$441.2 on Wednesday. The benchmark Hang Seng Index remained flat at 25,165.9 points.
Contact the writer at sophialuo@chinadailyhk.com
