Hong Kong’s IPO market is waking up. After a challenging few years, 2025 is already shaping up to be a turning point. In January alone, 8 new listings raised nearly HKD 6 billion, which is an undeniable improvement from the previous year. This highlights a structural shift when some of China’s biggest A-share companies CATL, Hengrui Medicine, and Haitian Flavouring & Food, are eyeing Hong Kong for a secondary listing.

According to some accounting firms’ estimations, this influx of large IPOs in Hong Kong could push total fundraising in 2025 to HKD 1.6 trillion in total, potentially restoring Hong Kong’s position among the world’s top three IPO markets. So, why are so many A-share companies rushing to Hong Kong? What does this mean for investors? And can this momentum last?

What’s Driving the A+H Surge?

An A+H listing means a company is publicly traded in both mainland China’s A-share market (Shanghai or Shenzhen) and Hong Kong’s H-share market. This dual listing structure has always existed, but 2025 is seeing a dramatic acceleration. What are the reasons?

A+H Listings Unlock Global Investors

Mainland China’s stock market is relatively restricted, with strict controls on foreign investment. This means even the biggest A-share companies often struggle to attract global capital. Hong Kong, however, operates under an open, international system. By listing in both markets, Chinese companies can tap into deeper liquidity and a wider investor base.

Take CATL, for example. As the world’s largest EV battery maker, it already places a huge impact on China’s stock market. But its upcoming Hong Kong listing could bring in heavyweight investors from the US and Europe, which is something it couldn’t achieve with an A-share listing alone. Bloomberg reports that CATL is expected to raise over USD 5 billion, making it Hong Kong’s largest IPO since Kuaishou’s debut in early 2021.

Hong Kong Offers Higher Valuations & Financial Security

Valuations in China’s A-share market are often dictated by government regulations and investor sentiment. If an industry falls out of favor, valuations can plummet overnight. Hong Kong, on the other hand, allows for more market-driven pricing, often leading to higher valuations for the same company.

For example, pharmaceutical leader Hengrui Medicine has been facing valuation pressure in China due to tightening healthcare regulations. A Hong Kong listing allows it to reset its market value and attract institutional investors who see long-term growth potential.

For many Chinese firms, a secondary Hong Kong listing serves as a financial insurance policy or a way to maintain access to international investors, even if mainland regulatory policies shift unpredictably.

How Hong Kong is Making IPO Easier

The Hong Kong stock exchange (HKEX) reported that January alone saw over 30 new listing applications, including seven A+H listings, a sharp increase from previous years. To sustain this IPO boom, Hong Kong has streamlined its listing process.

• Faster Approvals: In 2023, the median approval time for IPOs was 70 business days. In 2024, that dropped to 48 days. Now, in 2025, the goal is to approve listings within 40 days. This means lower costs and fewer delays for companies looking to list.
• Lower Market Entry Requirements: Hong Kong recently reduced its valuation threshold for specialized tech firms, making it easier for AI and biotech startups to go public. The minimum market capitalization requirement for commercial-stage companies was lowered from HKD 6 billion to HKD 4 billion.
• Incentives for Innovation: The introduction of Chapter 18C allows pre-revenue tech firms to list in Hong Kong, making it a more attractive destination for high-growth companies.

Another experiment in Hong Kong’s market reforms is the push for SPACs (special purpose acquisition companies). SPACs allow private companies to go public by merging with a listed shell company, skipping the traditional IPO route. The concept took off in the U.S. in 2020 and 2021 before cooling down due to regulatory crackdowns.

Hong Kong introduced its own SPAC framework in 2022, but uptake has been slow, and only a handful of deals have closed. To revive interest, HKEX is now easing restrictions, lowering the required third-party investment for SPAC deals, and making listing requirements more flexible.
For international startups seeking alternative pathways to public markets, it’s another option to consider.

Why A+H Listings Matter for Investors

For investors, the surge in A+H listings is a gateway to new opportunities. One major advantage is liquidity and price stability. When a company is traded in both Hong Kong and mainland China, it naturally attracts a broader investor base. Unlike A-shares, which are largely driven by domestic sentiment, H-shares benefit from international capital flows, creating a more stable trading environment.

Another key factor is transparency. Hong Kong enforces stricter financial disclosure rules than mainland China, which means A+H-listed companies must adhere to higher corporate governance standards. This added layer of oversight makes these firms more appealing to global investors, who often hesitate to invest in markets with less regulatory transparency.

Perhaps most importantly, A+H listings provide rare access to China’s biggest companies. Many of the country’s leading A-share firms, such as CATL and Hengrui Medicine, are either restricted or difficult for foreign investors to buy directly. But when these firms list in Hong Kong, they become accessible to institutional investors worldwide. For those looking to gain exposure to China’s economy without the regulatory barriers of the mainland, the A+H market is an increasingly attractive option.

Can Hong Kong Maintain This Momentum?

Hong Kong’s IPO market is gaining strength, driven by A+H listings, regulatory improvements, and major upcoming deals. If CATL’s HKD 5 billion IPO succeeds, it could set the tone for a record-breaking year.

Challenges such as global competition and China’s economic climate could influence investor sentiment. However, Hong Kong’s ability to attract top A-share companies reinforces its role as a key gateway to international capital. With a streamlined listing process and growing institutional interest, the city has a hope to reclaim its status as a global IPO hub.