Changpeng Wan
With nearly 80% of China’s overseas IPO candidates targeting Hong Kong, A-share companies are capitalizing on streamlined regulations and market advantages through dual listings.
Unprecedented Surge in Hong Kong IPO Applications
China’s securities regulator shows 165 A-share enterprises currently queuing for Hong Kong listings according to July 2025 disclosures. This represents 78% of all overseas IPO applications under review—a concentration that signals Hong Kong’s primacy as China’s preferred international listing destination. Year-to-date momentum confirms this trajectory with 10 companies completing listings by mid-July, expanding China’s cohort of dual-listed firms to 160.
Key Drivers Behind the Momentum
Three converging factors propel this trend:
- China Securities Regulatory Commission (CSRC) accelerated approvals under April 2024 “capital market cooperation measures”
- Hong Kong Exchange’s December liberalization of H-share listing thresholds via market structure reforms
- Heightened appeal of offshore liquidity buffers amid mainland market volatility
As securities lawyer Li Meng (李明) observes: “The efficiency of the CSRC’s filing process since 2023 rules implementation removed a major friction point. We’re seeing companies clear regulatory hurdles in 60-90 days versus 6-12 months previously.”
The Dual-Listing Advantage
The “A+H” model provides companies with complementary benefits from both markets. Mainland listings offer premium domestic valuations while Hong Kong positions firms for international capital access—Solidifying Hong Kong’s position as the primary destination for A-share companies listing abroad.
Recent High-Profile Success Cases
2025 landmark listings include:
- CATL (Contemporary Amperex): Raised $2B demonstrating strong institutional demand
- Luxshare Precision: Currently filing IPO seeking global supply chain financing
- Tinci Materials: Announced Hong Kong listing plans July 8th
Market Transformation Through Regulatory Evolution
Beijing’s Proactive Stance
The CSRC’s tripling of approval notifications in July exemplifies China’s coordinated push. The “5 cooperation measures” specifically encourage industry leaders to pursue Hong Kong IPOs—a strategic move harnessing Hong Kong’s position as the premier gateway for A-share companies listing overseas.
Hong Kong Exchange Innovations
December’s consultation paper lowered minimum profitability thresholds and simplified price discovery mechanisms. By reducing the H-share listing benchmarks, specifically encouraging listings for prominent A-share companies, Hong Kong explicitly opened doors for mid-cap innovators previously constrained by mainland listing requirements.
Industry Perspectives on Sustainability
Experts anticipate prolonged momentum across key sectors:
Banking Sector Analysis
He Zhaofeng (何兆烽), EY’s Greater China IPO leader, identifies multiple drivers: “New retail consumption brands and semiconductor firms constitute the next IPO wave. Their choice to pursue Hong Kong listings demonstrates confidence in mature institutional investor reception.”
Investment Banking Outlook
Goldman Sachs’ July analysis highlights unusual convergence: “We see simultaneous strong valuations across consumer, healthcare, and automation tech—precisely sectors driving Hong Kong listings.” Their report explicitly recommends institutional positions pre-IPO in dual-listing candidates.
The Pipeline: Next Wave of Hong Kong-Bound IPOs
The listing queue reveals strategic patterns:
- Material science leaders (Tinci Materials)
- Green tech manufacturers (Senior Material)
- Supply chain platforms (Luxshare Precision)
Notably absent are mainland financial institutions—signaling selective regulatory encouragement for export-oriented and tech-focused enterprises.
Forecasted Market Evolution
With Hong Kong cementing its position as the top destination for A-share listings abroad, three developments appear inevitable:
- Sector specialization intensifying in biotech and smart manufacturing
- Accelerated settlement timelines through digitized cross-border filings
- Enhanced RMB-HKD liquidity channels facilitating capital repatriation
Quantifying the Opportunity
KPMG Hong Kong partner Lau Tai Cheong (刘大昌) projects portfolio impacts: “Each major A-share listing brings $500M-$2B new offshore liquidity. This fundamentally recalibrates Hong Kong market depth while creating correlated investment opportunities.”
The Path Forward
China’s deliberate channeling of IPO activity through Hong Kong creates compelling market dynamics:
- Increased foreign ownership benchmarks for dual-listed firms
- Technical breakout opportunities across HKEX indices
- Enhanced secondary trading volumes post-listing settlement
For enterprises, the current convergence represents an unprecedented opportunity. Market conditions suggest first-movers stand to capture maximum valuation advantages. Execute comprehensive viability assessments immediately—delays risk encountering plateauing investor appetite once the current listing wave completes. For investors, prioritize due diligence on companies undergoing filing preparation to strategically position before official pricing announcements.
