The Hong Kong initial public offerings market is expected to sustain its robust fundraising activity next year, supported by a strong IPO pipeline, A+H listings and the attractive valuation of the Hong Kong equity market, according to financial and accounting specialists.

Global auditing advisory firm KPMG said Hong Kong has reclaimed the top spot in global IPO market rankings in 2025, a first since 2019.

"We are witnessing a steady influx of technology and biotech firms opting to list in Hong Kong, drawn by the city's supportive policies and stable regulatory environment," said Louis Lau, a partner and the head of Hong Kong Capital Markets Group at KPMG China. "As policies continue to promote innovation and new economy sectors, we expect 2026 to be a pivotal year for high-tech listings, further solidifying Hong Kong's position as a global capital markets leader."

As of November, the Hong Kong IPO market raised HK$259 billion ($33.2 billion), surging 228 percent year-on-year, supported by 93 new company listings this year, according to data released by the Hong Kong Special Administrative Region government.

The IPO market bonanza has been attributed to several megasized A+H listings, which accounted for half of the total IPO funds raised. Among these, mainland-based Contemporary Amperex Technology Co — the world's largest EV battery manufacturer — raised HK$41 billion through A+H listings, making it the largest IPO globally so far this year.

The IPO pipeline is also promising, with over 300 companies preparing to list — the highest on record — of which more than 40 percent are from the technology sector. Beyond IPOs, Hong Kong is also ranked among the top three exchanges globally for follow-on issuances, raising over $85 billion as of November.

Since 2018, the SAR has made numerous reforms in its listing rules to attract new economy and technology enterprises to list their shares in Hong Kong. The government said it is currently reviewing the listing regime, covering requirements for primary, secondary, and dual listings, as well as post-listing obligations.

Billy Mak, an associate professor at Hong Kong Baptist University's department of accountancy, economics and finance, said mainland companies from the artificial intelligence, electric car and biotech sectors are expected to be the major A +H listing candidates next year.

"These companies rely on overseas markets for international expansion. As an international fundraising platform, listings in Hong Kong enable these mainland companies to obtain capital, and these funds can be converted into other currencies without restriction, helping companies to make overseas direct investments," Mak said.

CPA Australia — a global professional accounting body — expects the Hong Kong IPO market to raise as much as HK$300 billion in 2026, boosted by the low valuation level of the equity market and the issuance size increase due to the falling trend of US interest rates.

"Attracting more global family offices into Hong Kong to increase market liquidity, and strengthening collaboration with the Chinese mainland and other overseas markets to streamline the company listing process in Hong Kong, are also welcome," CPA Australia's Kelvin Leung said.

oswald@chinadailyhk.com