Key takeaways
- Hong Kong is positioned to remain a leading global IPO market
- Hong Kong could become an increasingly important source of growth capital for Chinese technology companies
- Regulatory reforms may broaden Hong Kong’s appeal to Mainland and international issuers
- Constraints on US listings are likely to further strengthen Hong Kong’s role as a natural offshore capital-raising hub for Chinese companies
A cluster of AI-related mega listings, an encouraging package of regulatory reforms and growing interest from international investors are pushing Hong Kong IPO markets to new highs.
In 2025, the Hong Kong Stock Exchange (HKSE) topped global rankings for IPO fundraising, with proceeds exceeding US$37.4 billion, up 231% year-on-year. That momentum has carried over into 2026.
Hong Kong posted its strongest first-half performance in five years in H1 2026, with HK$209.9 billion (around US$27 billion) raised across 85 IPOs. The former figure is up 92% compared to the same period in 2025, while the latter represents a 102% year-on-year increase.
AI growth drives activity
The IPO surge has been led by a group of Chinese issuers in the high-growth technology hardware sector. They have benefitted from rising demand for AI computing infrastructure, and must raise capital to continue to invest in R&D and AI computing capabilities to support continued growth.
Victory Giant, a Chinese manufacturer of printed circuit boards (an essential piece of hardware used to power AI computing), raised HK$20 billion (US$2.6 billion) in its April IPO.
Apple supplier Lingyi iTech also rode the AI wave, as it raised HK$8.3 billion (US$1.1 billion) from its IPO to support investment in high-density AI servers, robotics hardware and optical communication technology.
MiniMax Group, one of China’s first large language model developers, is another AI IPO success story. Reflecting strong investor demand, the start-up increased the size of its share offering and raised HK$4.82 billion (US$610 million) at the top of its price range at the start of the year. Also, in January, Chinese AI model developer Zhipu raised around HK$4.3 billion (US$550 million) in its IPO.
This flurry of IPOs in Hong Kong highlights the maturity and capability of China’s AI ecosystem. IPO candidates are attracting investment from global investors and strong support from major international and regional investment banks.
Chinese frontier AI companies are producing highly competitive technology at much more attractive valuations than many comparable businesses in the US.
International investors have been drawn to the lower prices of Chinese AI companies, which some analysts estimate are trading at a quarter of the prices of their US counterparts and benefitting from lower R&D costs.
Capital repatriation
In addition to AI momentum, geopolitical, regulatory and macroeconomic factors have also contributed to the increase in Hong Kong IPO activity.
Shifts in US-China relations and regulatory environments have seen Chinese technology companies increasingly choose to raise capital from international investors through a Hong Kong listing rather than a US listing. For many Chinese technology companies, a US IPO has been a less practical option, with regulatory hurdles on both sides, making Hong Kong the natural offshore listing venue for these businesses.
This has led to international investors directing more capital to IPO opportunities in Hong Kong rather than building exposure to Chinese companies by participating in their US listings.
A significant number of Chinese Mainland companies, meanwhile, have turned to Hong Kong to build an international profile and support overseas expansion by pursuing A-to-H listings.
An A-to-H deal is a dual-listing arrangement where companies listed on Chinese Mainland exchanges (A-shares) also issue and shares (H-shares) in Hong Kong to tap global investors. Under the current regulatory frameworks and listing rules in Chinese Mainland and Hong Kong, qualified A-share listed companies can benefit from a streamlined overseas listing process. A-to-H listing activity was buoyant through the first half of 2026, with 24 deals progressing, already more than the 19 A-to-H listings recorded in 2025.
Reforms add to Hong Kong appeal
The HKSE is also reaping the benefits of reforms to its listing framework introduced in 2023 to attract specialist technology and advanced manufacturing companies to list on the bourse.
The Chapter 18C regime allows companies operating in eligible technology sectors to go public without having to meet the conventional profit and revenue eligibility tests applicable to standard main board listings. Listings under the 18C framework have climbed rapidly this year, with 13 IPOs going ahead. In comparison, a total of eight 18C listings were recorded over the previous three years.
But the HKSE is not resting on its laurels. Recently, the bourse further relaxed listing standards to remain globally competitive. At the end of July, the exchange announced that it would soften requirements for dual-class share structures, in which some shareholders can have higher voting rights, and making non-public IPO filings an election available to all listing applicants.
In a globally competitive market, these changes align Hong Kong with major international exchanges like New York’s Nasdaq, with the aim of attracting more international issuers to Hong Kong to complement the strong base of Chinese companies listed in the territory. Moving forward, we can expect the HKSE to continue to make meaningful changes to become more competitive.
In a mid-September policy address, Hong Kong Chief Executive John Lee said the Securities & Futures Commission (SFC) will open a consultation period on streamlining prospectus disclosure requirements in 2027 to promote the listing of international companies in the territory. In a similar vein, Lee added that the SFC and HKEX will increasingly foster dual primary and secondary listings of overseas enterprises on the exchange.
Furthermore, the HKEX recently launched the second stage of its listing framework competitiveness review, with an emphasis on the post-listing requirements governing notifiable transactions. The HKEX and SFC intend any changes to cut compliance costs for listed companies and improve their flexibility regarding M&A activity, restructurings and spinoffs.
Hong Kong is also progressing with proposed “big bang” tax reforms for fund managers and family offices that could further enhance its competitiveness as an international financial center.
A positive outlook
Market-friendly listings reforms, strong investor demand for Chinese technology companies and ongoing geopolitical shifts and regulatory developments have put Hong Kong’s IPO market on a firm footing for the rest of 2026 and beyond.
There are more than 500 active IPO applicants currently pursuing a listing in Hong Kong, a record-breaking figure. Applicants include not only Chinese Mainland companies, but also businesses from, for instance, Indonesia, South Korea and Singapore, which are looking beyond their domestic exchanges to satisfy their capital market needs. Swiss agrichemicals giant Syngenta recently filed for an IPO in Hong Kong, which, if successful, could be the largest offering since 2010.
This activity reflects the territory’s significance as a global financial center and a key connector between China and international investors, laying a solid foundation for long-term capital markets activity.