[WORLD] A wave of initial public offering (IPO) applications is sweeping the Hong Kong stock exchange, as companies move quickly to tap into improving investor sentiment and secure listings ahead of potential market turbulence driven by escalating tariff tensions.
From January to April this year, 112 companies lodged applications to list on the exchange’s main board—marking a 29 per cent jump from the 87 filings recorded during the same period in 2024, according to figures compiled by the Post from exchange data. The momentum picked up sharply in April, which saw 43 submissions—more than double the figure for the same month last year.
The uptick in activity comes amid signs of a rebound in Hong Kong’s equity market, following a prolonged downturn. The Hang Seng Index has advanced nearly 10 per cent since the beginning of the year, supported by a resurgence of capital inflows from mainland China and growing expectations of interest rate cuts by the US Federal Reserve. This recovery has emboldened companies to test investor demand for new offerings.
Including IPOs carried over from 2024, a total of 152 companies are now in the queue to debut on Asia’s third-largest stock market.
Several marquee names are among the pending listings, including a leading Chinese electric vehicle producer and a rapidly expanding biotechnology firm focused on cancer therapies. Market watchers view these listings as key indicators of investor confidence, with their success likely to spur further activity in the latter half of the year.
Nevertheless, risks remain. Analysts warn that geopolitical uncertainties and volatile global liquidity could derail some listing plans, particularly for companies with strong overseas exposure. While the current backlog appears promising, not all candidates are expected to make it to market, depending on how broader economic conditions unfold.
Regulatory shifts are also being closely monitored. In a bid to support offshore listings, the China Securities Regulatory Commission (CSRC) has recently simplified approval procedures for overseas IPOs—a move that could further energize the Hong Kong pipeline. Sectors such as technology, healthcare, and green energy, which dominate the current wave of applications, stand to benefit most from this policy tailwind.
The flurry of filings highlights a broader urgency among firms to raise capital while market conditions remain supportive. With uncertainty on the horizon, many issuers are aiming to lock in valuations and secure funding before sentiment shifts.
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