SHEIN's reported decision to abandon its London IPO bid in favor of Hong Kong marks a sharp turn in the path Chinese companies are taking to access global capital. This year, Hong Kong has already seen over HKD 76 billion raised through IPOs, a staggering increase of more than sevenfold from the same period last year.

The surge accounts for nearly 90% of the entire IPO proceeds raised in 2024 and has propelled Hong Kong to second place globally for IPO fundraising. And, according to HKEX CEO Bonnie Chan, more than 150 companies are currently lined up to list in the city.

The shift reflects how mainland companies are recalibrating their international fundraising strategies in response to tightening regulatory climates and geopolitical frictions. Hong Kong has emerged as a strategic platform because the city is financially mature, politically aligned with Beijing, and globally connected.

SHEIN's IPO Move is a Geopolitical and Financial Recalibration

SHEIN, the e-commerce powerhouse known for its global fast fashion footprint, had long planned a London listing. Political sensitivities around its supply chain, particularly ties to Xinjiang-sourced cotton, drew scrutiny from British regulators. The lack of approval from Chinese authorities further complicated the process.

Now, SHEIN is preparing to file a draft prospectus in Hong Kong, aiming to complete the listing within the year. If successful, it would become one of the largest IPOs globally in 2025 and deliver both financial momentum and symbolic weight to Hong Kong's capital markets.

More Chinese companies are making similar moves, choosing Hong Kong as a preferred destination for listing instead of Western exchanges.

The A+H Listing Trend is Reshaping Capital Flow Across the Region

HKEX (0388.HK) CEO Bonnie Chan recently revealed at an event that more than 150 companies are currently in line to list in Hong Kong, including some mega-cap firms aiming to raise over USD 1 billion.

According to data from Chinese financial media, currently at least 47 A-share listed companies have announced intentions to list in Hong Kong, and over 20 have already submitted formal filings. These include some of China's biggest consumer brands, such as Haitian Flavouring & Food (603288.SH), China's largest soy sauce manufacturer, which recently passed its HKEX listing hearing and may raise close to USD 1 billion.

These firms are pursuing full dual listings to attract international capital through Hong Kong while qualifying for southbound investment via Stock Connect. It's a strategy to diversify fundraising sources and increase investor access.

Policy reforms in recent years have supported the trend. Chinese regulators eased offshore listing procedures for large-cap firms. Hong Kong introduced a fast-track review process for companies with market caps over HKD 10 billion, cutting down listing time and increasing IPO momentum.

Consumer and Toy Stocks are Breathing New Life into the Market

While not all are recent IPOs, many mainland Chinese consumer companies that went public in Hong Kong over the past two years are now leading a market resurgence. Brands like Laopu Gold (6181.HK) surged more than 230% since the start of the year. Guming (1364.HK) rose over 170 percent, while toy company Bloks gained over 180%. These results contrast sharply with the disappointing performances of Cha Bai Dao (2555.HK) and Nayuki's Tea (2150.HK) in the past few years.

The new batch of IPOs reflects stronger fundamentals, proven demand, and expanding international ambitions. Some companies, like Guming, is poised to be added to the Hang Seng Index, opening the door to passive fund flows and institutional investment.

Toymakers have emerged as unexpected market leaders. Pop Mart (9992.HK)'s Labubu figurines sparked a buying frenzy in the UK, and the company has earned strong ratings from investment banks. Analysts have likened Labubu to Hello Kitty, highlighting its global appeal.

Bloks (325.HK), which holds rights to the Ultraman franchise, recorded a 155 percent revenue jump year-on-year. It sold 135 million toys in one year. Another toy brand, 52TOYS, is preparing to go public later this year with over 100 licensed and original intellectual properties, including Disney, Doraemon, and Chiikawa. These companies have built strong consumer franchises and global reach, attracting investors looking for scalable, culturally resonant growth stories.

Hong Kong's Appeal is Growing for Structural Reasons

Several forces are reinforcing Hong Kong's position as a top IPO destination. Mainland IPO approvals have become slower and more selective, especially in high-growth sectors, prompting companies to seek faster alternatives. At the same time, liquidity on the HKEX has improved, driven by stronger interest from both mainland and international investors.

The widening valuation gap between A-shares and H-shares has created pricing advantages for investors buying into Hong Kong-listed equities. Additionally, the HKEX has introduced sector-specific listing frameworks that streamline the process for high-quality companies, making it easier for them to meet regulatory requirements and attract long-term capital.

In addition, many companies listed in the U.S. are now seeking alternatives due to the risk of delisting. Switching to a primary listing in Hong Kong enables continued access to international capital and Stock Connect eligibility, offering both stability and investor access.

Conclusion: Will it Be a Long-lasting Rebound?

Hong Kong's IPO surge is being powered by regulatory reforms, investor demand, and the strategic choices of Chinese firms under geopolitical pressure. Companies like SHEIN are moving listings to Hong Kong for its speed, alignment, and capital access.

The next phase depends on continued policy support, strong post-IPO performance, and the success of high-profile listings in the pipeline. For now, the HKD 76 billion raised this year and the growing queue of listing hopefuls signal that Hong Kong's IPO engine is running strong, and its appeal is only deepening.

Squadron Insights

Hong Kong's IPO Revival: 150 Firms Queue Up and SHEIN Possibly Joining