Chinese Mainland and Hong Kong IPO Markets 2024 Review and 2025 Outlook

Driven by a number of sizeable IPO deals during the second half of the year, Hong Kong is expected to rank fourth globally in terms of IPO funds raised in 2024, reclaiming its position among top five global IPO markets, according to KPMG's Chinese Mainland and Hong Kong IPO Markets 2024 Review and 2025 Outlook. This performance underscores improved investor confidence, generating positive momentum that is expected to continue into 2025. Additionally, the city’s enhanced connectivity with the Middle East is expected to help facilitate potential secondary listings from the region.

In Hong Kong, IPO applicants remained cautious in the first half of 2024 due to high interest rates and slowing global economic growth, resulting in HKD 13.4 billion raised from 30 IPOs. The second half showed a significant recovery, with HKD 69.5 billion raised across 33 deals, accounting for over 80% of the full-year proceeds. This recovery was driven by the listing of several sizeable deals, including four of the 10 largest IPOs in the past three years. In total, Hong Kong raised HKD 82.9 billion across 63 deals, marking a 78% increase in funds raised compared to 2023.

Earlier in the year, Hong Kong saw the listing of its first two Specialist Technology Companies under Chapter 18C. These companies, primarily engaged in AI and robotics, diversify Hong Kong’s portfolio and reinforce its position as a hub for innovation. Additionally, the city completed its inaugural De-SPAC transaction, resulting in the listing of a Southeast Asian digital solutions platform. These milestones, alongside temporary adjustments to the listing requirements for Chapter 18C and SPAC, highlight Hong Kong’s growing inclusivity and its strength as an international financial centre.