HKEX 2025 Hong Kong Equity Capital Market Review & Development Trends Analysis

炒年糕的貓貓
23 hours ago
3 min read

HKEX has released its 2025 Hong Kong Equity Capital Market Review report. Magnum Family Office has compiled the key findings and provides an outlook for 2026.

Strong Market Performance in 2025

1. Record Fundraising Volume:

Total equity capital market fundraising reached USD 103 billion, a 164% year-on-year increase.
Initial Public Offering (IPO) fundraising amounted to USD 37.4 billion, up 231% year-on-year, ranking first globally.
Post-IPO financing reached USD 66 billion, a 136% increase and the highest since 2021.

2.Increased Market Activity

Average daily turnover in the secondary market grew by 89.5%, with continued robust activity in Stock Connect.
New listings performed strongly, with an average first-day gain of 23.8% and an average one-month gain of 30.7%.

3.Diversified Investor Base

Global institutional investors, including sovereign wealth funds and long-only funds, actively participated as cornerstone investors.
Retail investor demand surged significantly, with some popular IPOs oversubscribed by over a thousand times.

4.Broad Sector Representation

Sectors like healthcare, TMT (Technology, Media, and Telecommunications), industrials, and new energy led global fundraising.
The number of international companies listed in Hong Kong hit a five-year high, including issuers from the US, Southeast Asia, and the UAE.
A-share companies continued to choose Hong Kong for listings, raising a combined USD 17.7 billion.

Future Outlook - 2026 Trends

2026 has started strongly for the Hong Kong capital market. As of January 30th, equity capital market issuance reached USD 15.8 billion, approximately six times the USD 2.5 billion recorded in the same period last year.

Over 400 companies are currently in the listing pipeline, including more than 50 companies applying under Chapters 18A, 18C, and 8A of the Listing Rules, spanning cutting-edge fields such as cancer treatment, smart robotics, and automated logistics.

Deepening Internationalization & Diversification

Amid shifts in the international geopolitical and regulatory landscape, more US-listed Chinese companies, as well as Southeast Asian and Middle Eastern firms seeking diversified funding channels, are expected to choose Hong Kong as a primary or dual-listing venue.

Increased allocation by international sovereign funds, pension funds, long-only funds, and technology-focused institutional investors is expected to enhance market pricing rationality and liquidity depth.

Furthermore, the continued expansion of connectivity mechanisms (e.g., ETF Connect, derivatives cooperation) between the Mainland and Hong Kong will provide more channels for both domestic and international investors.

Artificial Intelligence and Technology Innovation

Artificial Intelligence is set to be a key driver of the 2026 IPO market and will fuel growth across the broader TMT and hard-tech ecosystem. Companies in AI computing infrastructure, core algorithms, vertical applications, as well as new energy and biotech, are anticipated to accelerate their listings in Hong Kong.

Measures such as the HKEX's dedicated "Technology Company Hotline" and allowing pre-revenue tech companies to submit confidential listing applications are expected to further facilitate fundraising in these sectors.

Continued High Activity in Post-IPO Financing

Post-IPO financing volumes significantly exceeded IPO fundraising in 2025, a trend likely to continue in 2026. Fast-growing listed companies in tech, new energy, and consumer sectors are expected to utilize diverse tools like placements, rights issues, and convertible bonds for follow-on financing to support R&D, expansion, and M&A, further solidifying Hong Kong's appeal as a fundraising hub.

Resilience & Risk Management

Against a backdrop of global macroeconomic volatility, uncertain interest rate environments, and complex geopolitics, Hong Kong's market will need to demonstrate sustained resilience. Regulators and the exchange may further optimize market mechanisms, enhance trading efficiency and transparency to navigate potential volatility, safeguarding investor interests and the long-term stability of Hong Kong's financial system.

Conclusion

Overall, Hong Kong's equity capital market demonstrated strong recovery momentum and structural upgrades in 2025, reclaiming the top spot in global fundraising while making significant strides in listing performance, investor diversification, internationalization, and sector development.

Looking ahead to 2026, the strong start suggests continued momentum. The accelerated clustering of innovative industries like AI is expected to help Hong Kong build a future-facing listing ecosystem, injecting new growth drivers and investment opportunities into the market.