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Chronicles

The story behind the story

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PwC: 76 mainland Chinese companies listed on Hong Kong Stock Exchange in 2025, up from 30 in 2024, despite the city's waning appeal to international investors

In a hotel lobby on Hong Kong Island, a delivery robot pauses outside one of the lifts as the doors open, and a guest steps out.

BBC Sylvia Chang

Context & Ripple Effects

Hong Kong’s 2025 IPO recovery had already been concentrated in Chinese technology: rules permitting loss-making listings helped revive the pipeline, while Chinese tech listing applications accelerated during the year. By December, AI companies were driving an unusually busy IPO month, tying the increase in mainland issuers to a sector-specific financing cycle.

The listing surge also coincided with a tech- and semiconductor-led rebound in Hong Kong equities, including the Hang Seng Index’s strongest annual gain since 2017. PwC’s count shows that improved local issuance activity can coexist with weaker appeal to international investors.

First-order effects

  • Mainland Chinese issuers gained a more active Hong Kong listing venue in 2025, with 76 companies listing versus 30 the year before.
  • Hong Kong Stock Exchange benefited from a materially larger flow of new mainland listings, particularly amid the technology and AI-led IPO pipeline documented in related coverage.

Second-order effects

  • A fuller Hong Kong pipeline raises pressure on other Chinese listing venues to compete for growth-company mandates, even as onshore AI and chip listings also accelerated later in the coverage period.
  • Banks, advisers and investors focused on Chinese technology issues gain a deeper set of Hong Kong transactions to evaluate, while the exchange’s international-investor challenge remains unresolved.

Third-order effects

  • If issuance remains driven primarily by mainland companies and domestic technology themes, Hong Kong’s role may shift further toward a China-centered capital-raising market rather than a broadly international listing hub.
  • The durability of the recovery will depend on whether secondary-market demand broadens beyond the tech, AI and semiconductor segments that powered the 2025 rebound.

The trend: Hong Kong is re-emerging as a major venue for mainland Chinese growth-company IPOs, with the strength of that revival increasingly tied to domestic technology financing rather than international investor demand.

Discussion

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    Why Chinese tech companies are racing to set up in Hong Kong