Regulatory changes have built momentum in Hong Kong IPOs

“The Hong Kong IPO market has picked up its momentum after a slowdown in previous years,” said Edward Au, southern region managing partner for Deloitte China. “We have expanded our forecast for the Hong Kong IPO market in 2025, expecting around 80 listings to raise approximately HK$200 billion over the year if the market situation continues to be conducive.”

Hong Kong’s capital market overhaul comes at a time when global financial hubs are competing more fiercely than ever, with sustainable investments gaining significant traction. Au said that the government’s 2025-26 Budget builds on this momentum, proposing further reforms to optimise primary and secondary listing thresholds, and streamline post-listing obligations. “These changes, if implemented promptly, could lower the entry barriers for high-quality overseas issuers and enhance certainty in the listing journey,” he said.

Miguel Latorre, managing director of consulting firm Acclime, described the changes to Chapter 18C for specialist technology companies and the Technology Enterprises Channel as “definitely a step in the right direction”.

“It sends a clear signal that Hong Kong wants to support innovation and align itself with global environmental, social and governance (ESG) capital flows,” said Latorre. “By allowing earlier-stage, R&D-heavy companies – especially in green tech – to list before reaching profitability, it lowers a big barrier for companies building long-term solutions.”

According to Au, current market momentum has been driven by several key factors. “We observed a sustained inflow of funds, spurred by renewed global interest in China-related opportunities, particularly in AI and innovation,” he said. Mainland Chinese investors are increasingly participating as they enhance their offshore portfolios, while “relatively modest” IPO pricing has helped maintain investor interest, he added.

The robust pipeline reflects the momentum. Au revealed that HKEX was processing over 170 active IPO applications as of June 18 – a figure that excludes both confidential submissions under the new pathway for specialist technology and biotech companies, as well as secondary listing applicants.