On November 27th, Ernst&Young released its report "Review and Outlook of IPO Markets in Mainland China and Hong Kong in 2025". The report points out that IPO activities in mainland China and Hong Kong are showing a growth trend globally, with A-share and Hong Kong markets accounting for 16% and 33% of the global total in terms of IPO volume and fundraising for the year. Among them, the A-share market is overall stable with progress, and the Hong Kong Stock Exchange's annual financing of 36 billion US dollars has jumped to the top of global exchanges.
In the global market, the number of IPOs is basically the same as last year, but the fundraising amount has increased compared to last year. Chinese companies hold five positions in the top ten global IPOs, with an increase in the number compared to 2024. Their industries are distributed in the automotive, mining, energy, and advanced manufacturing sectors.
The A-share market has seen an increase in the quantity of "science" and a simultaneous improvement in the quality of institutional optimization
In 2025, the A-share IPO market will achieve moderate growth under the background of stable regulation and optimal structure, and the fundraising scale will significantly increase compared to last year. The average fundraising amount of IPOs increased by over 50% year-on-year, rising to 1 billion yuan. At the same time, thanks to the drive of super large IPOs, the proportion of billion yuan IPO fundraising has significantly increased.
In addition, driven by policies such as the "827" new regulations and the new "National Nine Measures", the price to earnings ratio of new stock issuances has continued to decline in the past two years, gradually returning to rationality and reaching a nearly five-year low this year. On the first day of listing, there was no breakthrough, and the average return rate reached 253%, ranking first in the past five years and unchanged from 2024.
From the perspective of industry structure, the industrial, technology, and materials industries rank among the top three in terms of IPO numbers; The energy industry has risen to the top three in terms of financing scale this year.
The report shows that technological innovation has become a significant core feature of this year's declared enterprises. Regarding this, Yang Shujuan, Managing Partner of Ernst&Young Beijing, stated: "Over the past five years, the A-share IPO market has undergone a transformation from 'scale expansion' to 'quality priority'. After experiencing a high level of operation in 2021, the market has achieved structural optimization through phased adjustments, indicating that it has entered a more mature stage of development. This year, the number of new IPOs and financing scale of A-shares have both increased year-on-year, but their core has shifted from being driven by quantity in the past to a new paradigm of high-quality development guided by technological innovation and supported by institutional inclusiveness. ”
Hong Kong stock market experiences strong recovery, with mainland enterprises dominating the IPO market in Hong Kong
In 2025, the Hong Kong IPO market will experience a strong recovery, with IPO fundraising exceeding HKD 200 billion after four years, returning to the second peak in nearly five years. The Hong Kong Stock Exchange has surpassed the New York, Indian, Mumbai, and Nasdaq stock exchanges in terms of financing scale, ranking first in the world. The listing of large-scale IPO projects has become a key factor driving the rise of Hong Kong stocks, with outstanding contributions from A+H and A-share split H enterprises from mainland China. It is expected that more than 20 A-share companies will be listed in Hong Kong for the whole year, raising a total of over HKD 170 billion.
Meanwhile, the intensive release of large-scale IPOs has boosted the average financing scale by 137% compared to last year, reaching the second highest level in nearly five years. Among the top ten IPO fundraising amounts, the industrial and retail consumer industries dominate, mainly in popular tracks such as new energy vehicles and batteries, advanced manufacturing, etc.
Currently, the capital markets of mainland China and Hong Kong have entered a stage of complementary development, with the two markets working together to serve the overall national strategy. In the first half of the year, international capital continued to pour into the Hong Kong market, accelerating the inflow of southbound funds and driving the structure of Hong Kong stock investors from 'foreign led' to 'dual wheel drive of domestic and foreign capital'. Although facing periodic fluctuations, the overall trend of Hong Kong stocks is showing an upward trend, and scale growth and structural upgrading have been achieved under the multiple effects of leading enterprises, market policies, and external environment
In terms of industry structure, new consumption and hard technology have become the "dual engines" driving Hong Kong stock listing activities. The implementation of policies such as the "Science and Technology Enterprise Special Line" has provided a fast listing channel for more high potential technology companies. Li Kang, Co Managing Partner of TMT Industry at Ernst&Young Greater China, said: "Currently, many reform measures in the Hong Kong stock market have demonstrated institutional flexibility and innovative inclusiveness, which can enhance the vitality and competitiveness of the Hong Kong stock market in multiple dimensions such as listing, trading, product and capital flow. This year, the diversification and concentration of cornerstone investment entities participating in Hong Kong stock IPOs have demonstrated the international attractiveness of the Hong Kong stock market. ”
As of November 26, 2025, a total of 64 Chinese companies have gone public in the US stock market, but the lack of large-scale IPOs has led to a "counter trend" decline in fundraising. The average fundraising amount has dropped to a new low in the past five years year-on-year, with small-scale fundraising dominating.
The capital market continues to open up in a two-way institutional manner, and technology will become a bright background for listed companies
2025 marks the beginning of a new decade of interconnectivity between the capital markets of mainland China and Hong Kong. The two capital markets will further deepen cooperation, strengthen institutional coordination, market interconnectivity, and product linkage.
A-shares are gradually returning to regular issuance, and will continue to be promoted under the framework of "stabilizing pace, improving quality, and optimizing structure". Among them, the Beijing Stock Exchange has become the main force for IPO applications and guidance filing. The continuous deepening of multi-level capital market construction is expected to continuously expand the financing channels for enterprises. From the perspective of industry distribution, the main focus is on strategic emerging industries, with active applicants mainly covering projects in fields such as artificial intelligence, robotics, semiconductors, new energy, and biomedicine.
In terms of the Hong Kong IPO market, it is expected to maintain its popularity, but the growth pace tends to be stable, showing structural deepening characteristics. In terms of listed entities, the A+H model is expected to continue to be hot, while the return of Chinese concept stocks and specialized technology companies will jointly constitute an important source of listing. The Hong Kong Stock Exchange continues to promote the optimization of the listing system, further enhancing the overall efficiency and competitiveness of the Hong Kong securities market. Southbound funds are expected to maintain stable net inflows.
For companies planning to go public, He Zhaofeng suggests that "companies should actively embrace technology and build a future oriented business and financial governance system. Faced with the risks of cumbersome financial data collection and increasingly strict external regulatory audits, companies should consider building an integrated business and financial system, making it a priority for IPO preparation to connect business and financial data flows, fundamentally ensuring data homology, synchronization, and process transparency. And build a traceable data evidence chain, strengthen digital transformation and intelligent financial construction, and actively demonstrate digital governance capabilities to investors
Reprinted: China Trade News
If there is any infringement, please contact the administrator to delete it
