At the start of 2025, Hong Kong's securities market sees a round ofboom in listingThe

According to the data, since January 8, there are eight new shares are "waiting for the scene" - they will be in the next seven days to land in the Hong Kong stock market. At the same time, there are more than ten mainland enterprises submitted applications for listing in Hong Kong.

It can be seen that under the tightening of the A-share IPO, some enterprises to be listed are facing the pressure of buyback from investors and have to find another way to go public.The Hong Kong market has become the first choice for many companies due to its relatively liberal listing conditions and mature, internationalized capital market environment.

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IPO in Hong Kong heats up

Early 2025.Mainland enterprises have accelerated the pace of listing in Hong Kong.Early January, including Honey Snow Ice City,home town chicken (item on a menu)Fourteen companies, including the following, have centrally submitted applications for listing in Hong Kong.

In addition.Some A-share listed companies are setting off a wave of "A+H" listings.January 6Mayweather Biologicals(688062.SH) announced that the company has submitted an application to the Hong Kong Stock Exchange on January 6, 2025 for the issuance of H-share stock and listing on the main board. According to incomplete statistics, 20 A-share listed companies have planned or spun off their subsidiaries to list in Hong Kong during 2024.

The Hong Kong Stock Exchange has disclosed that Hong Kong ranks as one of the four largest IPO markets in the world in 2024, with aListing activity and capital raising were much higher than in the previous year.As of December 20, 2024, the Hong Kong Stock Exchange has welcomed a total of 66 IPOs.Total capital raised amounted to HK$83 billion.

As of January 9, 2025, a cumulative total of more than 80 companies are in the queue for IPOs in Hong Kong in 2024 and 2025, and the current review status of these companies is "under processing".

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Analysis of the reasons why mainland enterprises choose Hong Kong for listing

Policy support and promotion

The Chinese government actively supports enterprises in making overseas listings. Although the A-share market is an important channel for domestic enterprises to go public, it may be affected by policy adjustments and market movements at specific stages.

For example, during the period from 2023 to the first half of 2024, the listing standards of the A-share market became more stringent. However, the State and the SFC still encourage enterprises to go public through other means and have expedited the filing process for listing in Hong Kong and other foreign countries to support enterprises to go out and raise funds for their development, which is facilitated for private enterprises.

Mature capital markets

As an international financial hub, Hong Kong has a large and active capital market as well as strong liquidity, attracting global investors. With its efficient listing procedures and registration system, the listing process can usually be completed within 6 to 12 months, which is more efficient and shorter compared to the approval system in the Mainland.

Convenient refinancing mechanism

After listing in Hong Kong, a company can raise additional shares in as little as six months by simply authorizing the board of directors at a general meeting of shareholders, with no need for additional approvals.

In addition, Hong Kong provides diversified means of refinancing, such as issuance of additional shares, rights issue, issuance of convertible bonds, and so on, to provide flexible channels for enterprises to raise capital.

Diversified investor structure

Hong Kong brings together investors from all over the world who have sophisticated investment philosophies and are receptive to different types of businesses.

This diversified investor structure helps the company obtain a more reasonable valuation and build a stable shareholder base.

Geographic location and economic ties

Hong Kong has a unique economic and trade relationship with the Mainland of China and is one of the Mainland's largest trading partners, with trade between the two places continuing to grow.

Hong Kong's status as a free port and its entrepot function have facilitated the flow of mainland goods to the world; the Mainland is one of the largest sources of Hong Kong's inward direct investment, while Hong Kong is also an important investment destination for the Mainland.

Brand Value Enhancement

Listing in Hong Kong can significantly increase the visibility and brand value of an enterprise and enhance its credibility and competitiveness in the market.

Higher information transparency of listed companies makes it easier for them to get the attention of the public and the media, which is conducive to building a good corporate image.

Optimization of shareholding structure

The high degree of openness of Hong Kong's capital market allows enterprises to bring in international strategic investors and professional institutional investors, thereby optimizing their shareholding structure, enhancing corporate governance and laying a solid foundation for long-term development.

Moving into 2025, industry insiders believe that with the improvement of liquidity and valuation repair of Hong Kong stocks, theThe IPO market will continue its recovery.

The Hong Kong capital market, with itsHigh degree of internationalization, rich access to financing, strict regulation, excellent geographical location, andup toPolicy supportand many other advantages, attracting more and more mainland enterprises to go public.

If you are interested in Hong Kong IPO, please feel free to enquire!