The Hong Kong Stock Exchange (HKEX) is experiencing a seismic transformation in 2025 — one marked by a historic surge in listings, record-breaking fundraising, and an unprecedented wave of A-share industry leaders making their way south. What was once seen as a secondary market for Chinese firms is now emerging as a strategic linchpin in China’s broader financial ambitions.
With 40 new listings and HK$104.7 billion in total fundraising by June 26, 2025, the HKEX has already outpaced its 2024 performance, where just 27 IPOs raised HK$11.5 billion. This represents a staggering 810% increase in capital raised and a 48% rise in new listings year-on-year.
EY forecasts that Hong Kong will raise approximately HK$108.7 billion in the first half of 2025 — enough to claim the top spot globally for IPO fundraising. Behind this momentum lies more than just favorable market conditions; it reflects a calculated shift by some of China’s most powerful corporations toward dual "A+H" listings.
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The Rise of the A+H Powerhouses
Among the recent flood of Hong Kong IPOs are giants from critical sectors: Contemporary Amperex Technology Co. Limited (CATL) in battery tech, Hengrui Medicine in pharmaceuticals, Haitian Flavoring & Food in consumer staples, and Jihong Technology in e-commerce. These aren’t cash-strapped startups — they’re industry dominators with robust balance sheets and strong operating cash flows.
As of Q1 2025, CATL reported over RMB 321 billion in cash and equivalents, generating RMB 32.8 billion in operating cash flow in just three months. Hengrui Medicine held more than RMB 24 billion in cash, with net profits growing nearly 37% year-on-year.
So why go public again?
According to He Zhaofeng, EY Greater China’s Head of IPO Services, these companies aren't driven by financial need but by long-term strategic positioning: global expansion, access to international investors, capital structure diversification, and enhanced valuation resilience.
“A dual listing isn’t about raising money — it’s about building flexibility,” He explains. “It allows Chinese champions to hedge against regional market volatility and connect directly with global capital.”
Indeed, the trend shows no sign of slowing. Over 170 companies remain in the IPO pipeline at HKEX, including more than 60 A-share firms actively preparing for Hong Kong listings. Sectors like new energy, semiconductors, and biotech are expected to lead the next wave.
Why Hong Kong? The Strategic Advantages
Several factors make Hong Kong increasingly attractive:
1. Streamlined Regulatory Pathways
In 2024, regulators introduced fast-track approval channels for qualified A-share companies — cutting review times to as little as 30 working days. CATL completed its entire filing-to-listing process in just 25 days, setting a new benchmark for efficiency.
2. Access to Global Capital
While A-shares remain largely domestic, Hong Kong offers free-flowing capital and deep liquidity from institutional investors worldwide. For firms like Stone Technologies, whose overseas revenue exceeds 53%, a Hong Kong listing enhances brand visibility and investor alignment across key markets.
3. Valuation Diversification
Historically, H-shares traded at discounts to their A-share counterparts. But that’s changing. High-quality firms with strong ESG profiles and global growth narratives are now commanding premiums in Hong Kong — a phenomenon known as “valuation inversion.”
CATL’s H-shares briefly traded above its A-share price post-listing — a symbolic milestone indicating improved market depth and foreign investor confidence.
4. Risk Mitigation
With tighter再融资 (refinancing) rules on the mainland, Hong Kong’s “fast placement” mechanism allows quick follow-on offerings without shareholder votes — crucial during market turbulence or policy shifts.
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FAQ: Understanding the A-to-H Trend
Q: Are these companies really not raising money?
A: While capital raising is a benefit, the primary goal is strategic — gaining access to global investors, improving governance standards, and diversifying funding sources.
Q: What is an “A+H” dual listing?
A: It means a company is listed on both mainland China’s stock exchanges (Shanghai or Shenzhen) and the Hong Kong Stock Exchange. Shares are not interchangeable but represent ownership in the same entity.
Q: Why not list directly in the U.S.?
A: Geopolitical tensions, audit conflicts, and delisting risks have made U.S. markets less appealing. Hong Kong offers proximity, cultural familiarity, and regulatory alignment with China.
Q: Does this signal capital flight?
A: No — this is part of a state-supported strategy to strengthen Hong Kong as a global financial hub while keeping Chinese assets within a trusted offshore ecosystem.
Q: How does this support RMB internationalization?
A: HKEX’s RMB-HKD dual counter system enables direct RMB trading of shares, reducing conversion costs and promoting offshore yuan usage.
Hong Kong’s Evolving Role: From Gateway to Global Financial Hub
This shift isn’t accidental — it’s engineered.
China sees Hong Kong as central to its ambition of building a self-sustaining offshore financial ecosystem that rivals Wall Street while advancing RMB internationalization and easing capital controls gradually.
Recent developments underscore this vision:
- On June 24, 2025, Guotai Junan International received approval to offer virtual asset trading services — a move signaling deeper integration of digital finance into traditional markets.
- The release of the Hong Kong Digital Asset Development Policy Declaration 2.0 reaffirmed the city’s commitment to becoming a global innovation hub for digital assets.
- The launch of the “Tech Enterprise Express” channel simplifies listings for biotech and deep-tech firms, aligning with national innovation goals.
As Shanghai-based economist Wang Yingbo notes: “China is creating a third path — not full liberalization, but controlled openness via offshore markets like Hong Kong.”
This model leverages Hong Kong’s strengths:
- Rule of law and independent judiciary
- Free capital movement
- Dollar-linked currency stability
- Deep integration with mainland via Stock Connect and Bond Connect
“It's not just about listing,” says Financial Secretary Paul Chan. “It’s about using Hong Kong as a springboard for Chinese companies to go global.”
The Bigger Picture: Reshaping Global Finance
Hong Kong is no longer just a conduit — it’s becoming a pricing hub for Chinese assets under a “China assets + global capital” framework.
By attracting top-tier firms and pairing them with international investors, Hong Kong can develop an independent valuation mechanism that reflects true global demand — not just domestic sentiment.
This evolution supports long-term goals:
- Reducing reliance on Western-dominated financial systems
- Enhancing financial sovereignty
- Creating a stable offshore RMB ecosystem
- Positioning China at the center of next-generation finance, including tokenized assets and stablecoins
CICC analysts believe this could trigger a virtuous cycle: strong companies attract capital → capital attracts more companies → deeper liquidity → higher valuations → greater global influence.
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Conclusion: A Calculated Move in a Global Game
The surge of A-share titans into Hong Kong is not merely a market trend — it’s a strategic realignment shaped by policy foresight, corporate ambition, and geopolitical necessity.
For Chinese enterprises, dual listings offer resilience, visibility, and global reach. For Hong Kong, it's a rebirth as Asia’s premier financial gateway. And for China’s financial system, it's a bold step toward greater autonomy and influence on the world stage.
As more industry leaders follow suit — from EV makers to AI pioneers — one thing becomes clear: Hong Kong is no longer just an option. It’s becoming essential.
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A+H listing, Hong Kong IPO, Chinese companies going global, dual listing strategy, RMB internationalization, offshore financial hub, global capital access