Technology drives a-share momentum; HKEX tops global ranking

• A-share IPO market remains steady with a growing technology focus
• Hong Kong IPO market rebounds strongly, mega IPOs propel HKEX to global number one in funds raised
• Continued two-way institutional opening of capital markets; A+H listings expected to stay popular

EY releases the Chinese mainland and Hong Kong IPO report, reviewing 2025 performance and providing a 2026 outlook. The report shows that IPO activities in the Chinese mainland and Hong Kong continued to gain global share, accounting for 16% of global IPO volume and 33% of global proceeds. HKEX ranked first globally with US$36.0 billion in total funds raised.

The global IPO market continued to improve. Number of deals remained largely unchanged with increasing proceeds. Five of the world’s top ten IPOs were from Chinese companies, with the number increasing compared to 2024, spanning automotive, mining, energy and advanced manufacturing sectors.

Hong Kong IPO market rebounds; funds raised surpassed HK$200 billion

In 2025, Hong Kong’s IPO market staged a strong recovery, with total proceeds on HKEX reaching HK$280.0 billion, up 218% YOY, surpassing the HK$200 billion mark for the first time in four years and hitting the second-highest level in nearly five years. It also overtook NYSE and India (NSE and BSE combined) to rank first globally in terms of funds raised. Over 100 new listings are expected for the year, up 43% from 2024, signaling improved market activity.

Mega IPOs were the key driver of this rebound. The top ten IPOs raised HK$154.7 billion, accounting for over half of the total proceeds, with the average deal size increasing by 137% compared to last year, with eight deals exceeding HK$10 billion. Industrial companies dominated, led by the industrial and retail and consumer sectors, notably new energy vehicles and batteries and advanced machinery. 20 A-share companies listed in Hong Kong, raising a combined HK$170.0 billion, underscoring the continued popularity of A+H and A-to-H listings.

Jacky Lai, EY¹ Hong Kong Capital Market Services Spokesperson, says: “The Hong Kong IPO market not only rebounded strongly in scale but also demonstrated structural diversity and quality. Large deals stabilized market confidence while smaller deals added vitality, creating a healthy dynamic. With policy enhancements and international capital inflows, Hong Kong’s position as a global financial center will be further strengthened.”

New rules boost IPO debut performance

HKEX implemented new IPO pricing and allocation rules on 4 August 2025, introducing an increased cap on the clawback ratio to 35% and a lock-in mechanism for public subscription ratios, significantly improving the market subscription experience. Following these changes, only six out of 36 IPOs traded below issue price on debut. The average first-day return surged to 38%, the highest in five years, while the debut underpricing rate fell to 24%.

Market pipeline remains active

As of 26 November 2025, Hong Kong had 308 active IPO applicants, including 90 A-share companies planning to list in Hong Kong, underscoring the continued popularity of the A+H and A-to-H listing models. With the launch of the Technology Enterprises Channel (TECH), applications from AI, biotech and semiconductor companies surged. IPO activity is expected to remain vibrant in 2026, with growth becoming more measured.

Peter Chan, EY Hong Kong Technology, Media & Entertainment and Telecommunications Assurance Leader, says: “The Hong Kong and Chinese mainland capital markets have entered a complementary development stage, jointly serving national strategies. In the first half of the year, international capital continued to flow into the Hong Kong market while southbound funds accelerated, driving a shift in the investor structure from ‘foreign capital dominance’ to a ‘dual engine of domestic and foreign capital’. Despite short-term volatility, the overall trajectory of Hong Kong stocks remains upward, achieving scale growth and structural upgrades under the combined influence of leading enterprises, market policies and external factors.”

In terms of industry structure, new consumption and hard technology have become the twin engines driving Hong Kong IPO activity. Policies such as TECH have provided fast-track listing channels for more technology companies with high potential. Chan adds: “Recent reforms highlight the flexibility and inclusiveness of Hong Kong’s listing regime, enhancing market vitality and competitiveness across listing, trading, products and capital flows. The growing diversity of cornerstone investors also underscores Hong Kong’s international appeal.”

As of 26 November 2025, 64 Chinese companies went public in the US, but the absence of large IPOs drove fundraising down sharply. Average proceeds fell to a five-year low, with small-sized deals dominating.

A-share market: technology-led growth and institutional optimization

The A-share IPO market maintained steady momentum in 2025, with over 100 IPOs expected and total proceeds exceeding RMB110 billion, up significantly from 2024. Average proceeds rose to RMB1.03 billion, up more than 53% YOY, driven by the sharp increase of mega deals.

The IPO price-to-earnings (P/E) ratio in the A-share market continued to decline, hitting its lowest level in nearly five years. No new listings fell below their offer price on the first day while average first-day returns surged to 253%, tied with 2024, the first highest level in nearly five years. Industrials, technology and materials ranked top three by deal count, while energy climbed to third by proceeds.

The report highlights technology innovation as a defining feature of IPO applicants this year. Lai comments: “Over the past five years, the A-share IPO market has shifted from scale expansion to quality-driven growth. The market has entered a new paradigm of high-quality development after the market height in 2021, led by technology, innovation and supported by institutional inclusiveness. This year, both the number of new A-share IPOs and the total financing amount recorded year-on-year growth. However, the focus has shifted from quantity-driven growth to a new paradigm of high-quality development, guided by technological innovation and supported by institutional inclusiveness.”

Capital market connectivity: a new decade

2025 marks the start of a new decade of connectivity between the Chinese mainland and Hong Kong capital markets. Both markets will deepen cooperation in regulatory alignment, product innovation and market access.

IPO issuance in the mainland is gradually returning to normal under the framework of “stable pace, improved quality and optimized structure,” with the Beijing Stock Exchange emerging as a key venue for specialized and innovative SMEs with active applicants mainly covering projects in artificial intelligence, robotics, semiconductors, new energy and biopharmaceuticals.

Hong Kong’s IPO market is expected to maintain strong activity, though growth will be more measured, reflecting deeper structural development. The A+H dual-listing model is likely to remain popular, while the return of U.S.-listed Chinese companies and specialized technology firms will continue to be key drivers of new listings. HKEX is pressing ahead with listing rule enhancements to further improve market efficiency and competitiveness, and southbound capital inflows are expected to stay robust.

Lai adds: “Pre-IPO businesses should proactively embrace technology and build a future-oriented, integrated business-finance governance framework. Considering challenges such as complex financial data collection and increasingly stringent regulatory reviews, companies should prioritize developing integrated systems that connect business and financial data flows during IPO preparation. This approach ensures data consistency, synchronization, and process transparency. Furthermore, establishing traceable data evidence chains and strengthening digital infrastructure will enable companies to demonstrate strong digital governance capabilities to investors.”

1. Ernst & Young (EY member firm in Hong Kong)

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About the data

The global data presented in the press release are based on publicly available information as of 24 November 2025 and rest of them based on publicly available information as of 26 November 2025. Sources of data include EY statistics, Wind Information, the China Securities Regulatory Commission, Eastmoney, Hong Kong Stock Exchanges and Nasdaq.