Why Hong Kong is beating Wall Street as the top spot for IPOs

The enthusiasm of investors and companies for the capital market in Hong Kong wanders, as Chinese companies have agreed to the city to collect donations, which has sparked mad in the market that has been abandoned in recent years.

Huge deals and A state backed by the country For the companies listed in the main righteous exchange to search for a list in Hong Kong, they have pushed the volume of capital collection to the strongest half of the first year since 2021, according to data from the Data Data provider.

The new listing sizes on the Hong Kong Stock Exchange jumped about eight times to 14 billion dollars in the first half of this year, from only $ 1.8 billion in the same period in 2024, according to Dealogic. SPAC lists, or private purposes are excluded to collect capital through public subscription, with the aim of ultimately obtaining or integrating with another company.

This places the city on the right track to become the largest existing destination in the world this year, bypassing the Nasdaq Stock Exchange and the New York Stock Exchange. PWC Up to 100 subscriptions, subscriptions In Hong Kong this year, with a total donation collection exceeding $ 25.5 billion.

The frenzy came after years of Fading public subscription activity in the city Amid feelings after risk after birth and economic growth.

In the first half of this year, there were 43 new lists in Hong Kong, with revenues of up to 13.6 billion dollars, exceeding the total amount that was collected in 2024.

Compared, it was only there 73 lists in 2023Only $ 5.9 billion, according to HKEX data.

The renewed interest is fueled by the confluence of factors, including the regulatory winds in Beijing, the silent pace of the participation lists, the liquidity of the abundant market, and the fear of deletion in the American market, which prompted the main mainland companies to raise funds in Hong Kong, according to Stephen Sun, head of Chinese stock strategy in HSBC.

“The Public ingredient Book at the Hong Kong Market is definite [shares]Sun said. A-Shares refers to the shares listed on the mainland, while the stock arrows are those listed in Hong Kong.

“More and more companies use revenues to finance their globalization strategy,” Sun said, as the dollar in Hong Kong is more fun than the Chinese yuan in global markets.

A jump in Chinese stock prices Last SeptemberWhich caused stronger economic stimulus expectations, helped turn the landing narration of China.

At the beginning of this year, the release of the low -cost Deepseek model, but it is strong, has increased a gathering in Chinese technology shares as investors began to re -evaluate China’s ability to innovate, which sparked the re -renewal of Chinese shares.

“The market evaluations have improved widely to the level of historical average, which provides a better background for companies looking to collect donations,” said Eugene Hussiao, head of the Chinese stock strategy in Makari.

As of the closure of Wednesday, the Hang Kong index in Hang Kong has gained 21 % so far this year, making it one of the best major markets in the world.

Hope that the Chinese authorities will launch the additional financial spending to protect the economy from any trade shock, as it has pushed more business confidence and investors.

In a clear shift to support the private sector, Chinese President Xi Jinping said The senior business leaders in the nation in February The country needs to help them achieve economic growth.

This shift, along with the long -awaited approval by Beijing for the main mainland companies to be included abroad, launched a wave of pent -up demand, especially for high -quality companies facing the consumer and that are not displaced by the geopolitical, Lauren Tan, director of stock research at Morningstar.

Chinese stock organizer was released last year A large number of measures aimed at rapid tracking Approval of qualified continental technology companies in Hong Kong. Hong Kong organizers also launched the so -called Enterprises Technology In May to facilitate the approvals of traditional subscriptions for specialized technology companies and biotechnology companies, especially those already listed on the mainland.

“The policy that encourages the major citizens of companies on the list in Hong Kong has provided a snapshot that is needed in the arm” in reviving the public subscription activity in the city.

Pure flows south, followed by the link across the border Summary plots sharesIt has risen to a record level in the quarter of April to June, since the launch of the scheme in 2014, according to Wind information.

In a blatant contradiction, CSI 300 The Chinese standard has almost flourished this year, an increase of 0.2 % so far, according to LSEG data.

This prompted to the beach investors to transfer money to the shares listed in Hong Kong, which enhances the southfield flows to calculate nearly half of the Daily stock in Hong Kong, according to Sun’s estimates.

These factors have helped pay a wave of companies run by China on the mainland to search for a secondary list in Hong Kong, including the battery maker Contemporary amperex technology.

Already listed in Shenzhen, the company raised More than 5 billion dollars in Hong Kong secondary list In May, what is the largest show in the world so far this year.

Wind information showed that more than 200 active applicants for public subscription in the pipeline to be included on HKEX, more than 40 companies are already listed in shares exchange on the mainland.

The prominent companies that sought a preliminary menu in Hong Kong included this year the Mixue Bubble Tea Protevers, and the Holding CaoCao platform.

HSIAO said: “The appetite for raising foreign funds, especially in HKD, is a reflection of the broader plans to expand in foreign markets.”

Amid Cutthroat competition at home and intrusive commercial tensions with the United States, beijing called on its leading companies to expand worldwide and diversify their manufacturing sites.

In addition, the Hong Kong market is “more comprehensive” for emerging sectors, such as artificial intelligence, renewable energy, digital consumption and biotechnology, which are in line with the needs of programming companies, Wi -Lee, head of multiple asset investments in China at BNP Paribas.

The tensions raised by the United States and China in Hong Kong have made the preferred public subscription destination for many Chinese companies, due to fears that the Trump administration can ask the American stock exchanges.

“The secondary menu mainly provides additional insurance for Chinese companies listed in the United States in an unlikely event that the deletion becomes incomplete,” he told me, indicating that companies are likely to participate in financial advisers to clarify the “Plan B”, with or without deletion.