Hong Kong’s IPO boom awaits in 2025 as regulatory boost, interest rates align, bankers say

The outlook for Hong Kong’s initial public offering (IPO) market is expected to brighten next year on the back of lower interest rates and stronger regulatory support, according to deal makers.

IPO volume in the city could rise by 70 per cent to HK$150 billion (US$19.3 billion), from HK$87.6 billion this year, according to a forecast by Deloitte. Chinese companies’ secondary listings will contribute a significant portion next year, building on a recent pickup in such deals.

“The overall IPO market sentiment in 2025 should improve for several reasons,” said John Lee Chen-kwok, vice-chairman and co-head of Asia coverage at UBS. He pointed to the continued easing of the interest rate cycle as conducive for the equity markets, and the strong support from regulators regarding listing reforms and encouraging mainland China A-share companies to go for H-share listing in Hong Kong.

The Swiss investment bank topped the Hong Kong IPO bookrunners’ league table among international banks this year with a market share of 6.75 per cent, according to data from the London Stock Exchange Group.

“The A-share listed companies already have an existing shareholder base,” said Lee. “From a listing perspective in Hong Kong, it will be less complicated than unlisted companies.”