Unlock the Editor’s Digest for free

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

The number of companies applying for a listing in Hong Kong this year has hit an all-time high, as the territory tries to regain its status as a top financial hub and attract Chinese companies looking to expand abroad. 

A total of 208 companies applied for primary or secondary listings on the Hong Kong Exchange in the first six months of this year, beating the previous record of 189 companies in the same period in 2021, according to data from the exchange. Last month, 75 companies applied — a record number for a single month.

Companies have been attracted by Hong Kong’s soaring equity market, Chinese investors moving money into the territory and its relative openness to equity fundraising compared with the mainland. Chinese companies have also been attracted by the prospect of raising money in a currency pegged to the US dollar outside of China’s capital controls.

“You’ve got everyone coming all at once to the Hong Kong market,” said Kenneth Chow, co-head of equity capital markets in Asia for Citigroup. “You’ve had this confluence of international and Asian investors reallocating money to the Hong Kong market.”

The surge in listings has helped propel Hong Kong to the top of the capital markets rankings. The HKEX was the number one listing venue in the first half of this year with $13.9bn raised in initial public offerings and secondary listings, ahead of the Nasdaq with $9.2bn and the New York Stock Exchange on $7.8bn, according to data compiled by KPMG that excludes special purpose acquisition company deals.

The buoyant first half for the former British territory stands in contrast to the decline of the London market, which raised just £160mn in the same period — its worst half-year performance since 1995.

It also comes as the Hong Kong market posts its biggest first-half outperformance against Chinese stocks since 2008. That in part has been fuelled by Chinese investor money flowing into Hong Kong via the stock connect at record levels, and has whetted companies’ appetite to list in the territory. “The numbers are off the charts,” said Citi’s Chow.

The record Hong Kong pipeline includes about 47 companies that are already listed on the mainland, according to KPMG. The territory is now seen as the only realistic option for Chinese companies wanting overseas listings, given heightened US-China tensions and the threat of delistings.

These so-called A-to-H listings have been a driving force of Hong Kong capital markets activity since last year. These Chinese companies are seeking to raise money offshore to invest in overseas expansion as the domestic economy teeters on the edge of a deflationary spiral.

CATL, the world’s largest electric vehicle battery maker, in May launched a $5.3bn secondary A-to-H listing in Hong Kong, the largest of 2025. Others include pharma company Jiangsu Hengrui and, last year, white goods maker Midea.

“As we look into the pipeline of the deals, a lot of these [Chinese] companies have strong global presence,” said Johnson Chui, head of global issuer services at HKEX.

“The reasons for listing in Hong Kong could include brand building, raising international capital or offering Hong Kong stock as compensation to employees or for use as an acquisition currency as they think about options for potential growth,” he added.

The HKEX has taken steps to encourage more companies to list over the past few years, including establishing separate listing routes for specialist technology and biotech companies.

Hopes are rising that the listings boom could broaden out beyond Chinese companies. Thai coconut water maker IFBH raised more than $100mn in Hong Kong at the end of June.

“In terms of international issuers: the way we think about it is we are the listing venue of choice for Asia-focused companies,” said HKEX’s Chui. “We are definitely seeing an increased issuance and willingness for international companies to come to Hong Kong to list to access our global and broad investor base.”

While not every company that files paperwork follows through with a listing on the exchange, the current pipeline of companies includes at least one Apple supplier, Lens Technology, which makes glass for the iPhone manufacturer and is already listed on the mainland. It also includes the international arm of gold miner Zijin Mining and Chery Automobile, China’s largest auto exporter.

Fast-fashion giant Shein is also believed to be moving towards a Hong Kong listing over London or New York.

The success for Hong Kong comes as fundraising on the mainland Chinese market remains muted. Total funds raised from January to June have declined 5 per cent to Rmb53.7bn ($7.5bn) compared with a year ago, according to KPMG data, despite authorities telling some companies they could begin the process of listing.

Data visualisation by Haohsiang Ko