Recently, Hong Kong’s share-sale market transformed from a reflection of China’s economic slowdown to a vibrant hub for capital fundraising. After facing dismal investor sentiment and a scarcity of deals, share sales surged nearly fourfold this year to exceed $73 billion through various mechanisms, including initial public offerings (IPOs), placements, and block trades. For the first time since 2013, Hong Kong emerged as Asia’s leading fundraising destination, ranking second globally only to the United States. This resurgence comes amid a broader deal-making boom across Asia, marked by record IPO activity in India and robust markets in mainland China and Japan.
Chinese companies spearheaded this resurgence, launching large-scale fundraising efforts to facilitate global expansion. Notably, battery manufacturer Contemporary Amperex Technology Co. secured $5.3 billion in May, marking the world’s second-largest listing. Electric vehicle manufacturer BYD Co. and tech giant Xiaomi Corp. also raised over $5 billion each through share placements. These activities continued even as the U.S. implemented tariffs and faced political backlash.
“This year has exceeded expectations,” stated James Wang, head of Asia equity capital markets at Goldman Sachs Group Inc. “We anticipate that volumes will continue to increase, although at a more cautious rate.”
The growth in Hong Kong’s market is part of a broader trend; four of the top five share-sale venues globally are now located in Asia, with India, mainland China, and Japan following Hong Kong. Bloomberg data indicates that for the first time, four Asian markets rank among the top five globally for share sales.
The IPO pipeline in Hong Kong appears robust, with around 300 companies waiting to list, according to figures from the Hong Kong Stock Exchange. Amid the surge in deal-making, regulators have had to admonish banks for submitting substandard applications, highlighting the fast-paced environment. However, some investors are exercising caution due to the intensity of the market.
This year’s surge is a sharp contrast to the downturn experienced in 2022, when rising borrowing costs, escalating US-China tensions, and Beijing’s clampdown on tech giants hampered the market.
In 2023, Hong Kong benefitted from China’s ambitions in artificial intelligence, advances in biotechnology, and efforts by the Beijing government to stimulate domestic demand, alongside increasing global prices for gold and aluminum. Meanwhile, share sales in mainland China remained muted, a reversal from previous years when Chinese market proceeds outstripped those of Hong Kong.
“Sectors aligned with China’s key strategies will continue to see activity in the IPO space,” explained Shi Qi, deputy head of capital markets at China International Capital Corp. These sectors primarily include technology, advanced manufacturing, and robotics.
Major potential listings anticipated in Hong Kong next year include companies currently not trading elsewhere, creating a new wave of deals alongside second listings of firms already traded in China. Some of the largest expected IPOs involve Chinese-owned Syngenta Group, a Swiss agricultural technology firm, and CK Hutchison Holdings Ltd.’s health and beauty subsidiary, A.S. Watson Group. Additionally, Chinese AI companies are predicted to enter the market.
“The IPO pipeline is substantial,” remarked Peihao Huang, head of Asia-Pacific equity capital markets at JPMorgan Chase & Co. “The upcoming challenge will be how the market absorbs this supply, the valuations involved, and the pacing, especially since the market hasn’t seen this level of activity in recent years.”
Hong Kong listings have yielded a weighted average return of nearly 50% from their launch prices, outperforming the Hang Seng Index. However, the realization of the 300 prospective deals in the upcoming year and their performance will depend heavily on the broader stock market’s health.
While the Hang Seng Index has shown a gain of 29.5% this year, indicating its best performance since 2017, concerns have emerged in the fourth quarter. Particularly, Chinese stocks have recently declined amid ongoing worries over tech valuations and the non-arrival of expected fiscal stimulus.
“Investors may approach with increased price sensitivity and selectiveness in their participation,” advised Rob Chan, head of Asia equity capital markets syndicate at Citigroup Inc. Chan remains optimistic about a busy 2026, as the expiration of lockup periods from this year’s listings could prompt block trades from existing shareholders and further equity sales.
Asia’s Dominance
India has similarly been a significant contributor to the region’s deal-making activity.
“Currently, we have a higher number of billion-dollar-plus deals than before,” stated Manan Lahoty, head of capital markets at law firm Cyril Amarchand Mangaldas, regarding the Indian market. “By the end of this year, we will likely file or initiate more deals than in all previous years combined.”
In India, IPOs have reached a second consecutive year of record activity, raising over $20 billion, bolstered by an expanding pool of investments from domestic mutual funds and retail investors. Existing shareholders have also been eager to liquidate their holdings via block trades.
Prospective major listings in Mumbai in the coming year include Reliance Industries Ltd.’s telecommunications division, Jio Platforms Ltd., expected to become the largest IPO in the country’s history. Furthermore, multinational corporations may continue to explore opportunities in India’s rising market valuations for their subsidiaries, according to Peter Guenthardt, head of Asia-Pacific global corporate and investment banking at Bank of America Corp.
“Every multinational with a significant presence in India is evaluating whether to take that segment public,” Guenthardt suggested.
Lofty Valuations
However, these very valuations raise questions regarding the sustainability of the current IPO boom. Data indicates that roughly half of the more than 300 companies that went public in India this year are currently trading below their debut values. The MSCI India Index has risen more than 7% in 2023, but this remains below the regional benchmark.
“A substantial downturn in the market could potentially unsettle some investors,” commented James Thom, senior investment director of Asian equities at Aberdeen Investments. Thom recently opted out of investing in the IPO of e-commerce platform Meesho Ltd. due to concerns over its valuation and profitability. The stock saw a more than 50% rise on its first trading day.
Despite these warnings, Thom expressed confidence in the growth potential of Indian companies, which may underpin market performance in the upcoming year. “The focus might shift slightly away from the IPO market,” he added.
The excitement is also present in mainland China, which overtook the U.S. in 2022 to become the largest global share-sale market, before imposing a self-regulatory tightening in the following year. Retail investors in China have shown eagerness for IPOs related to chip manufacturing, crucial for achieving the nation’s technological autonomy. For instance, shares of Moore Threads Technology Co., a leader in the industry, surged over 400% upon their recent Shanghai listing.
However, the entire scenario could be disrupted by external factors beyond the control of those in the deal-making sector, such as geopolitical tensions.
“It remains uncertain whether next year will surpass fundraising levels achieved this year,” said John Lee, co-head of Asia country coverage at UBS Group AG, regarding the Hong Kong market. “At least in the first half of the year, overall issuance volume is expected to be on par with or potentially exceed the current year’s figures.”
Published on December 14, 2025
