Mainland IPO market to pick up steadily and Hong Kong's strong momentum to sustain until the end of 2025

The Deloitte China Capital Market Services Group today released its interim review and outlook for the Chinese mainland and Hong Kong initial public offering (IPO) markets in 2025.

In 1H 2025, the global IPO market remained robust, with a nearly 20% year-over-year increase in funds raised by the top 10 IPOs, even amid escalating tension between countries such as Russia and Ukraine, and Israel and Iran and the reciprocal tariffs set by the US. Emerging innovative artificial intelligence (AI) software in China spurred continuous inflows of capital while measures to support listings of prominent A-share listed companies in Hong Kong sent it to the top of the global pack by funds raised. Nasdaq and New York Stock Exchange were in 2nd and 3rd, each with two of the world's top 10 IPOs.

The A-share market started to show signs of renewed vitality in Q2 2025 after its slow start in Q1 2025, even as regulators continued to implement heightened scrutiny over IPO candidates. This scrutiny prompted a flock of small Chinese companies to seek to raise funds in the US.

Over the rest of this year, A-share IPOs are set to maintain a similar pace to the one set in 1H 2025. Overall, A-share IPO activity in 2025 is expected to be close to its 2024 level in a more tightly regulated environment. As the China Securities Regulatory Commission continues to deepen reform of the SSE STAR market with the "1+6" measures, implement the 3rd set of standards for ChiNext, and introduce measures to support listings of high quality, pre-profit innovative companies, the A-share market will gradually become more active, especially in high-tech sectors.

Hong Kong, however, is expected to raise more funds this year than previously forecast, if the conducive conditions of the current market sustain, fuelled mainly by A+H listings. Amid delisting risks, the US, with its strong investor based and appetite for tech companies, should remain an attractive listing destination for smaller Chinese businesses, especially those from innovative sectors.

By 30 June 2025, the A-share market is expected to have hosted 50 IPOs raising RMB37.1 billion, up from 44 new listings raising RMB32.5 billion in 1H 2024. This would represent a 14% rise in both the number of IPOs and proceeds raised. Shanghai Stock Exchange is expected to have hosted 19 IPOs raising about RMB20.2 billion, followed by Shenzhen Stock Exchange with 26 listings raising around RMB15.0 billion, with Beijing Stock Exchange expected to have had about 5 IPOs raising RMB1.9 billion. ChiNext will become the most active market with the highest volume of deals, with the Main Board in Shanghai leading in proceeds raised.

"We are pleased to see more activity in the A-share market in Q2 2025 and 1H 2025 overall. This demonstrates the success of regulators' efforts to restore market confidence and improve the quality of IPO candidates and issuers," says Dick Kay, National leader, Capital Market Services Group, Deloitte China.   

"National support for and emphasis on developing the technology and innovative sectors will encourage new quality productivity forces such as technology and new energy companies to raise funds in the capital market and enter the market spotlight in 2H 2025," adds Tony Huang, National A-Share Offering leader, Capital Market Services Group, Deloitte China. 

Hong Kong is set to end 1H 2025 having hosted 40 IPOs raising about HKD102.1 billion. This would be a 33% year-over-year increment in deal volume and 673% surge in deal size, after the market saw only 30 IPOs raising HKD13.2 billion in 1H 2024. Nearly three-quarters of the 1H 2025 proceeds came from four mega A+H listings and an H-share IPO.

"We are very excited to see Hong Kong regain the crown jewel in IPO proceeds among major global stock exchanges. Measures encouraging leading Chinese companies to list in Hong Kong and streamlined listing applications for A-share listed companies, together with improved market valuations, liquidity and capital absorption capacity, have all added momentum to Hong Kong IPO market," says Robert Lui, Southern Region Offering Services leader of the Deloitte China Capital Market Services Group.

With a dynamic IPO pipeline of more than 170 applicants, including five companies expected to raise at least USD1 billion each, the Capital Market Services Group anticipates that IPO proceeds in Hong Kong will reach HKD200 billion in 2025 from 80 listings. Apart from a potential 25 A+H IPOs during the year, most Hong Kong new listings will come from technology, media and telecommunications and consumer companies.

"We are cautiously optimistic that Hong Kong is well positioned to contend for the top position in the global IPO market in 2025. This optimism stems from a strong IPO pipeline, growing momentum and a more favourable market environment, provided there are no adverse geopolitical or macroeconomic disruptions. Increasingly, A-share listed companies including those on the National Equities Exchange and Quotations, are capitalising on Hong Kong's international fundraising platform to access global capital, elevate their profile and 'go global'. At the same time, new policy initiatives such as the Technology Enterprises Channel, are set to facilitate listings by more biotech and specialist tech companies, further fueling growth in fundraising volumes. As Hong Kong's listing regime continues to evolve and attract a new wave of new economy issuers and IPO candidates, Hong Kong's capital market is gaining depth and dynamism, reinforcing its role as a premier global listing venue," says Edward Au, Southern Region managing partner, Deloitte China.

In the US, 36 Chinese companies will have listed raising USD689 million in 1H 2025, up from the 23 new listings which raised USD677 million in 1H 2024 and representing increases of 57% in IPO volume and 28% in proceeds raised. Apart from a large listing from a tea company and another by a pharmaceutical company, these offerings were small. 

_{Notes to editors: Unless specified otherwise, all statistics are updated with our estimates and analysis as of 30 June 2025 and exclude listings from by investment trust companies, closed-ended investment companies, closed-ended funds, special purpose acquisition companies (SPACs) and de-SPACs.}

_{Sources for A-share IPO statistics: the China Securities Regulatory Commission, Shanghai Stock Exchange, Shenzhen Stock Exchange, Beijing Stock Exchange, Deloitte estimates and analysis.}

_{Sources for Hong Kong IPO statistics: the Stock Exchange of Hong Kong, Deloitte estimates and analysis; excludes GEM to MB transfers and SPAC and de-SPAC listings.}

_{Sources for global and US IPO (Chinese companies) statistics: the Stock Exchange of Hong Kong, , Nasdaq, New York Stock Exchange, Bloomberg, Refinitiv, and Deloitte estimates and analysis.}