Hong Kong's IPO resurgence: Tech-capital synergy forges win-win path

The record $4.6 billion Hong Kong IPO of Contemporary Amperex Technology Co. Limited (CATL), the world's largest electric vehicle (EV) battery maker, has cemented the Chinese city's rebound as a global fundraising hub, showcasing the deepening synergy between China's technological innovation and international finance.

IPO market rebound from 'cold snap' to global leadership

The IPO market in China's Hong Kong Special Administratvie Region (SAR) has staged a dramatic comeback in 2025, with $7.73 billion raised through new listings and secondary offerings, a sixfold increase year on year, according to LSEG data. This resurgence marks Hong Kong's return to the top of global IPO fundraising rankings, a position it last held in 2021 with Kuaishou's $6.2 billion listing.

The turnaround follows a two-year downturn from 2022 to 2023 when geopolitical tensions and regulatory uncertainties drove fundraising volumes into the doldrums. Yet over the past decade (2014-2024), Hong Kong's IPO market still maintained the world's largest cumulative fundraising total of $303 billion, outpacing the NASDAQ and NYSE, said HKEX Vice President Lu Chenjian during a Shenzhen-Hong Kong financial cooperation forum.

Tech drives financial renewal

CATL's blockbuster listing epitomizes the pivotal role of mainland tech champions in revitalizing Hong Kong's capital markets. The new energy giant's shares surged 16.4 percent on their debut, defying U.S.-China trade tensions and its inclusion on a U.S. Department of Defense blacklist. Global institutional investors oversubscribed the deal 15.2 times, while retail demand hit 151 times coverage, signaling robust appetite for China's strategic sectors.

"This listing means our wider integration into the global capital market and a new starting point for us to promote the global zero-carbon economy," said CATL Chairman Robin Zeng at the listing ceremony. The company plans to build a European battery factory serving clients like BMW and Volkswagen, blending technology transfer with financial globalization.

Policy momentum fuels listing surge

Hong Kong's competitive edge stems from policy support and structural reforms. In 2024, China's securities regulator introduced five measures to facilitate the top mainland firms list in Hong Kong, including streamlined approval processes and tax incentives. As a result, A-share giants like Midea, Hengrui and Sanhua have accelerated Hong Kong listings to access offshore capital for research and development and overseas expansion.

According to Caijing New Media, over 20 A-share companies have filed for Hong Kong listings in 2025 alone, including pharmaceutical leader Hengrui and EV component maker Junshan Electronics.

(With input from Reuters)