Di Yi Cai Jing Zi Xun·2025-11-26 13:17Core Viewpoint - The Hong Kong stock market is experiencing a significant surge in IPOs, surpassing major exchanges like the NYSE and NASDAQ, and is on track to become the leading global market for new stock fundraising by 2025. For Chinese companies, listing in Hong Kong is shifting from a necessity to a proactive choice [1]. Group 1: IPO Trends and Market Dynamics - In the first ten months of this year, 81 companies have gone public in Hong Kong, raising a total of 215.977 billion HKD, with over half of this amount contributed by 14 A-share companies [1]. - The fundraising amount in Hong Kong for the first ten months is close to the total for the years 2022, 2023, and 2024 combined, indicating a significant improvement in market liquidity compared to previous years [1][3]. - The listing cycle has drastically shortened, with companies like CATL completing the process in under six months, a significant reduction from previous timelines [4]. Group 2: Factors Driving the Surge - The surge in Hong Kong IPOs is driven by three main factors: the spillover effect from A-share IPO policies, the return of Chinese concept stocks seeking safer options, and the concentration of large transactions boosting fundraising scales [3]. - The acceleration of the listing process is attributed to faster approval times and a more efficient inquiry process from regulatory bodies, with some projects completing the necessary approvals in as little as five to six months [4][5]. Group 3: Regulatory Improvements and Market Conditions - Enhanced cooperation between regulatory bodies in mainland China and Hong Kong has streamlined the listing process, reducing redundancy in inquiries and improving overall efficiency [5]. - Recent reforms in Hong Kong have optimized listing rules for technology companies and allowed unprofitable advanced manufacturing and green technology firms to go public, further facilitating the listing process [5]. Group 4: Valuation Trends and Future Outlook - The valuation of Hong Kong stocks has improved, with the AH premium index showing a significant decrease of nearly 23% from the previous year, although some leading companies still exhibit price discrepancies between A and H shares [7]. - The ongoing trend of "A+H" listings is expected to continue, particularly among high-growth sectors such as technology and renewable energy, as companies seek to optimize their financing structures and enhance their international presence [9].