In 2025, bolstered by southbound capital flows into Hong Kong stocks, the city's IPO volume will reclaim its position as the world's largest!

With momentum building throughout the latter half of 2024, DeepSeek's emergence in early 2025 proved a pivotal market turning point. Not only did it successfully revitalise trading activity in Hong Kong stocks, but it also prompted global investors to reassess the value of Chinese technology assets. Expectations of industrial prosperity driven by technological breakthroughs swiftly permeated capital markets, propelling Hong Kong stocks into a comprehensive rally. Crucially, sustained southbound capital flows provided vital support, while the IPO market's stellar performance emerged as the year's defining highlight, restoring Hong Kong stocks to the global capital market spotlight.

Outstanding IPO Performance: Fundraising Volume Reclaims Global Top Spot, Break-Even Rate Hits Recent Low

The recovery momentum in Hong Kong's IPO market proved particularly robust throughout 2025, delivering a truly remarkable annual performance. Data indicates that the total IPO fundraising volume for the year is projected to reach HK$286.3 billion, successfully reclaiming the top global position and ending several years of sluggishness. This achievement owes much to the robust backing of major industry leaders. Among the top ten Hong Kong IPOs in 2025, eight companies raised over HK$10 billion each. CATL and Zijin Gold International particularly stood out, becoming the world's largest and second-largest IPOs respectively, laying a solid foundation for the market's fundraising surge.

Notably, the 2025 Hong Kong IPO market achieved not only quantitative growth but also qualitative improvement. The annual IPO break-even rate dropped to a low of 28.83%, marking a recent record low. This figure fully reflects the significant restoration of investor confidence in Hong Kong new listings amid market recovery, with the profit-making effect of new share subscriptions gradually becoming apparent. Deloitte offers an optimistic outlook for future trends, anticipating that with over 300 pending listing applications, the Hong Kong IPO market could surpass HK$300 billion in 2026, sustaining the current robust recovery momentum.

Dual Highs in Refinancing and Dividend/Buybacks: Comprehensive Release of Market Vitality

Beyond the robust resurgence of the IPO market, Hong Kong's refinancing market also demonstrated remarkable activity in 2025, serving as crucial evidence of market recovery. Annual refinancing volume reached HK$316.6 billion, with the number of planned transactions hitting a multi-year high. This scale not only substantially exceeded the average levels from 2022 to 2024 but also highlighted the full release of listed companies' financing demands amid the market's recovery. Among the refinancing projects, industry leaders stood out notably. Xiaomi Group and BYD led the top ten refinancing projects respectively, securing substantial capital. Leveraging the capital markets, they further consolidated their business foundations and advanced strategic expansion.

Concurrently, the shareholder return mechanism in the Hong Kong stock market reached a peak in 2025. Annual share buybacks reached HK$175.936 billion, while dividend payouts approached HK$1.46 trillion – both figures setting historic records. This substantial growth in buybacks and dividends reflects listed companies' firm confidence in their development prospects while delivering tangible returns to investors. This has further enhanced market attractiveness and stability, fostering a virtuous cycle of market recovery and corporate growth.