What Hong Kong’s booming IPOs tell us about global markets

Robin Harris, Head of APAC, Ocorian

When it comes to initial public offerings (IPOs) in 2025 all eyes have been on one stock exchange: Hong Kong’s. In the first half of the year, HKEX raised estimated funds of HK$111.6bn (US$14.3bn), ahead of the combined total of the U.S. exchanges (the Nasdaq and the New York Stock Exchange), ahead of China, and well ahead of the UK and other European exchanges.^[1] IPO fundraising is being seen in the region as a barometer for the market, and the forecast is extremely positive.

Hedge funds show the way

The bellwether for predicting, some might say informing, positive forecasts is often the hedge fund industry. Hedge funds are perennially on the lookout for great-value investments, the ability to turn quick profits, and to be among the vanguard of spotting thematic trends.

What started as a positive year in the U.S. was soon slowed by the headline-grabbing tariffs announced by President Trump in the spring, which spooked investors and caused a level of introspection domestically and internationally.

Alongside this is the difficulty of securing returns in a market many feel is already overvalued and fully priced – investing at the top of a stock’s value is hardly a sensible strategy for any investor, let alone large institutional players who claim greater prescience and ability to generate returns.

Across the Atlantic, Europe has flattered to deceive, as conflict at its doorstep combined with domestic political upheaval in many of its largest economies have resulted in market flatlining, or showing only the briefest glimpses of recovery.

As the year has gone on, Hong Kong’s strong start began to look increasingly sustainable, and success begets further success, as hedge funds especially sent a strong signal that if there was value to be found in 2025, it was in the IPOs on HKEX.

HKEX’s 2025 boom

As ever with Hong Kong, one of the key pillars of its success is the jurisdiction’s role in facilitating global access to China, and Chinese access to foreign investment.

Many of HKEX’s biggest deals of 2025 have been dual listed on a mainland Chinese stock exchange and HKEX. These offer the best of both worlds, as they benefit from international and domestic capital and send a message that the company is globally oriented and ambitious for growth.

And ‘growth’ is exactly the point. For hedge funds, and other investors, growth-stage capital is the obvious arena in which to generate the most returns; it’s better to be in on the ground floor of a rapidly growing business that launches an IPO than it is to get on at the top floor of a fully valued U.S. tech giant.

Four of the top 10 global IPOs in the first half of the year were Hong Kong-based, with the biggest of all being CATL’s raising of HK$36bn (US$4.5bn) in May.^[2] The world’s largest manufacturer of lithium-ion batteries for electric vehicles (EVs) was always going to be an appealing listing, even in a sector that is subject to so much international trade wrangling and competition.

At the front of the queue were the huge global hedge funds Millennium, Qube and Boyu capital. All took their share of the institutional allocation and even positioned themselves as cornerstone investors, sending a clear signal that hedge funds are once again going to be the bellwethers of credibility and confidence.

Strategic industries attract global investment

CATL’s listing is indicative of the IPO market as a whole across the region. President Xi is extremely supportive of key strategic industries – including batteries, rare earth metals, EVs, chips and robotics – accessing international capital alongside domestic investment, so HKEX’s success has multiple winners.

The rest of the list of completed and planned top HKEX IPOs from the first half of the year features a robotics company in Yunji Technology, an AMOLED display manufacturer in Everdisplay Optronics and I-Mab Biopharma, a biotech innovator. Access to international and institutional capital will allow these companies to continue to grow and scale rapidly – hopefully yielding returns while also sending a signal that global money is powering Chinese innovation.

HKEX’s success, which has continued and is projected to almost double 2024’s fundraising, is seen in the region as an indicator of broader economic and market trends. Where the US is in tentative recovery and Europe sits in stasis, Asia is growing and is harnessing industry, innovation and an increasingly global outlook to profit massively and develop global leaders in key fields.

Hong Kong has proved to be a behemoth for global capital formation in 2025, and with the backing of global hedge funds that looks set to continue. Hedge funds may be the first to interpret the forecasts, but it hasn’t taken long for others to follow and bask in the warm glow of HKEX’s success.

Ocorian offers a full spectrum of corporate, fiduciary, and compliance services to support companies through the HKEX listing process, as well as bespoke pre-IPO estate planning solutions for their executives. This dual approach helps both the business, and its leadership navigate the complexities of going public and securing their personal wealth for future generations. To learn more visit www.ocorian.com

^[1] https://www.pwc.co.uk/services/audit/insights/global-ipo-watch.html

^[2] https://assets.kpmg.com/content/dam/kpmg/cn/pdf/en/2025/07/china-hk-ipo-2025-mid-year-review.pdf