Hong Kong’s equity market ended the year with a strong final push, recording over 100 initial public offerings in 2025—marking the highest annual total in five years. The rally was driven by technology and financial firms seeking to capitalize on year-end market sentiment.
- 108 IPOs completed in Hong Kong during 2025, the highest annual total since 2020
- Final week of December saw 12 new listings, including three in technology and two in financials
- Average first-day return for December IPOs was 14.7%, above 2025 annual average of 7.2%
- 42% of 2025 IPOs were from mainland Chinese companies
- HANG SENG INDEX gained 2.3% in December, supported by IPO momentum
- Fintech and AI-driven firms led the final wave of listings
Hong Kong’s stock market concluded 2025 with a flurry of IPO activity, as 12 new listings debuted on the Hong Kong Exchanges & Clearing Ltd. (HKEX) platform in the final week of December. This brought the year’s total to 108 IPOs, surpassing the 89 completed in 2024 and signaling renewed investor confidence in the region’s capital markets. The momentum was led by three tech firms—two specializing in AI-driven software and one in semiconductor design—along with two financial services companies, including a fintech firm offering cross-border payment solutions. The HANG SENG INDEX rose 2.3% during the last trading month, driven in part by strong subscription demand for new issues. The average first-day return for IPOs in December reached 14.7%, significantly above the 2025 annual average of 7.2%. This indicates heightened appetite among retail and institutional investors, particularly for growth-oriented firms in the technology and consumer sectors. Market participants attribute the surge to a combination of favorable domestic policy signals, including tax incentives for tech startups and streamlined listing rules for innovation-driven firms. Additionally, the HKEX reported that 42% of IPOs in 2025 were from mainland Chinese companies, reflecting ongoing cross-border capital flows despite geopolitical headwinds. The final wave of listings also included two consumer brands targeting international expansion, underscoring the sector’s resilience. The closing rally has implications for market liquidity, investor positioning, and future fundraising. With the year-end window closing, companies may now delay plans into 2026, pending potential shifts in regulatory frameworks or interest rate policy. However, the strong finish suggests Hong Kong remains a pivotal gateway for Asian equities.