Hong Kong Overtakes the U.S. as Mainland Companies’ Premier Offshore Listing Venue

August 25 — According to Bloomberg, 46 companies from mainland China have selected Hong Kong as the venue for their initial public offerings this year, collectively raising USD 16.5 billion. In comparison, only 16 firms opted to list in the United States, generating a total of USD 740 million. Data from KPMG shows that Hong Kong’s IPO market recorded its strongest first-half performance since 2021, with fundraising increasing sevenfold year-over-year, while proceeds in the U.S. declined by 8 percent. The Hong Kong Stock Exchange also reported its highest-ever half-year profit, reaching HKD 8.52 billion—a 39 percent rise from the previous year—alongside solid revenue growth.

Wu Lixian, strategist at Everbright Securities International, told the South China Morning Post that Hong Kong’s financial markets have shown consistent recovery and resilience. He added that growing uncertainty in U.S. markets is encouraging more issuers to turn to Hong Kong. Dai Ming, fund manager at Shanghai Huichen Asset Management, noted that companies listing in the U.S. often face financing limitations that result in discounted equity issuance, whereas Hong Kong’s markets have demonstrated strong performance and the potential for premium valuations, making them a more attractive option.

Investor interest in Hong Kong IPOs has been notably high. The South China Morning Post reports that new listings in the city have delivered an average first-day gain of 19.4 percent, compared to just 3.6 percent for U.S. offerings. Of the 44 mainland firms that went public in Hong Kong during the first half, half were oversubscribed by more than 100 times. Futu Holdings reported that five IPOs reached subscription levels of 1,000 times, with over 71 percent closing higher on their debut.

The contrast between the two markets is especially evident in the beverage sector. Mixue Ice Cream & Tea saw its shares jump 47 percent on its Hong Kong debut in July, while Bawang Chaji’s Nasdaq listing in April rose only 16 percent, highlighting the difference in investor sentiment.

Nicolas Aguzin, CEO of Hong Kong Exchanges and Clearing, identified three types of issuers increasingly favoring Hong Kong. The first includes A-share companies seeking offshore capital through A+H share structures. The second consists of mainland firms already listed in the U.S. pursuing secondary listings to align with regional trading hours and reduce geopolitical exposure. The third group comprises innovation-driven businesses in sectors such as AI, biomedicine, and robotics.