Chinese mainland-based companies flock to Hong Kong for IPO listing as connectivity deepens

Source: Global Times

By Global Times

Updated: 2025-09-17 17:24

Hong Kong Photo: VCG

A number of Chinese mainland-based companies are flocking to Hong Kong to seek secondary stock listings, banking on an initial public offering (IPO) boom in Hong Kong during the first half of the year, as the city continues to step up efforts to deepen financial connectivity with the mainland.

Chinese automobile manufacturer Chery Automobile Co said it aims to raise HK$9.15 billion ($1.18 billion) through an IPO on the Hong Kong Stock Exchange, according to a company filing on Wednesday.

The Chery IPO, which reportedly could be one of the major IPOs in Hong Kong this year, followed moves by several industry-leading companies to seek listings there.

Hesai Group, which develops, manufactures, and sells light detection and ranging (LIDAR) sensor solutions, made its debut at HKEX on Tuesday, with its shares rising as much as 15 percent in early trading on Tuesday.

And, fashion jewelry brand CHJ Jewelry filed a listing application with HKEX on September 12 and Chongqing Qianli Technology said its board approved plans the same day to seek a secondary listing in Hong Kong.

Dong Shaopeng, a senior research fellow at the Chongyang Institute for Financial Studies at Renmin University of China, told Global Times on Wednesday that as technology innovation companies need to pool resources across different markets for development, the complementarity of the mainland and Hong Kong stock markets can be of great help.

"The Hong Kong stock market welcomes listings by mainland technology innovation companies, attracts secondary listings from overseas listed companies, enriches the investment pool, and helps investors optimize their asset allocation," Dong said.

"The HKEX, with its outward-oriented nature, is an ideal listing venue for companies eyeing the overseas market. Whereas the mainland stock market can meet the needs of businesses to interact with the mainland market's industrial chain and consumers."

Fueled by large H-share listings from companies such as Contemporary Amperex Technology Co, Jiangsu Hengrui Pharmaceuticals Co, Foshan Haitian Flavouring and Food Co, and Zhejiang Sanhua Intelligent Controls Co, the Hong Kong IPO market boomed in the first half of 2025, according to data from Wind, signaling the city's resurgent role as a global capital gateway linking Chinese mainland companies with international capital.

A total of 43 IPO projects were completed, up 13 projects year-on-year, the paper.cn reported. The total funds raised reached HK$106.71 billion, up 688.56 percent and exceeding the full-year total of HK$88.147 billion in 2024.

The development comes as the city strives to strengthen its role as a two-way bridge for global investors seeking opportunities in the mainland and mainland companies going global.

Chinese mainland-based companies can leverage Hong Kong's strength to connect with global buyers and build international brands, while Hong Kong will step up efforts in assisting Chinese mainland technology companies in raising funds in the city, Hong Kong Special Administrative Region (HKSAR) Chief Executive John Lee Ka-chiu said, delivering his annual Policy Address on Wednesday.

As part of the measures in continuously strengthening the city's stock market, Lee revealed that the city will leverage the Technology Enterprises Channel to assist Chinese mainland technology firms in raising funds in Hong Kong, strengthening financial support for the nation's development as a science and technology powerhouse.

"We will encourage more overseas enterprises to seek secondary listing in Hong Kong, support China Concept Stock companies to return from overseas market, with Hong Kong as their preferred destination," Lee said.

In the past three years, Hong Kong has moved up one slot to become the third-ranked global financial center and has climbed four spots to rank third globally in overall competitiveness, Lee said.

The Hong Kong stock market has maintained its strong momentum. The Hang Seng Index has risen more than 20 percent year-to-date, while the average daily trading has reached $250 billion, nearly double that of last year, according to the CE's annual Policy Address.

At the end of August, the cumulative amount of funds raised through IPOs exceeded $130 billion, nearly six times higher than that of the same period last year, making Hong Kong the world's top market for IPO fundraising.