‘Vibrant’ Hong Kong market seen drawing more listings from abroad

When Malaysian civil engineering contractor BBSB International listed in Hong Kong last month, its offering was oversubscribed by a factor of nearly 11,000, and its shares rose more than fivefold from their offer price of HK$0.60 on the morning of their trading debut. BBSB is one of several non-Chinese companies that have flocked to Hong Kong to list recently, and banks expect more to follow this year as the city’s initial public offering (IPO) market booms. While New York and London used to be the only options for international companies, Hong Kong had become a viable global listing venue because the market was “vibrant” and liquidity had increased significantly, said Kenneth Chow, Asia co-head of equity capital markets at Citigroup. “That’s why we’re seeing a lot of international companies listing in Hong Kong,” he said. Already the preferred offshore listing venue for mainland companies, especially as geopolitical tensions have intensified in recent years, Hong Kong has seen a growing number of overseas companies turning to the exchange to raise funds. This diversification came after the city reclaimed its spot as the top global IPO market in 2025 and its secondary market boomed. Five non-Chinese overseas companies listed in Hong Kong in 2025, with total fundraising of US$1.04 billion, more than triple the US$344.7 million raised from three deals in 2024, according to data compiled by the London Stock Exchange Group. In November, Africa-focused hygiene-products maker Softcare listed in Hong Kong, raising a total of HK$2.4 billion (US$307 million). The offering was oversubscribed by 1,813 times. Before that, US biotech firm Cloudbreak Pharma debuted in the city in July, raising a total of HK$522 million. Jan Metzger, Citi’s Asia head of investment banking, said the bank foresaw “a large year for Hong Kong” in terms of companies raising capital by issuing equity. “And we do think some international names will list here as well,” he said. Nearly 100 companies filed new listing applications in Hong Kong in January, according to a report from bourse operator Hong Kong Exchanges and Clearing (HKEX). That expanded the pipeline of companies awaiting flotations in the city to 440, with 26 approved and 414 being processed. On January 29, the benchmark Hang Seng Index briefly crossed 28,000 points, a level last seen in July 2021. Chow said international investors had returned to compete for hot Hong Kong IPOs, while a softening US dollar and lower interest rates also helped to create a positive backdrop for equity issuance in Asia. The bank expected multiple “mega IPOs” this year – potentially up to 10 US$1 billion listings, he said. International long-only funds are coming back because “they can make money from Hong Kong’s IPO market”, helped by conservative IPO pricing last year, said Timothy Fung, head of equity strategy for Asia at J.P. Morgan Private Bank. “We see some liquidity outflow from developed markets into emerging markets, and a lot of them are actually investing in both the secondary and primary markets,” he said. However, Fung said the market outlook for Hong Kong and mainland stocks remained mixed, with investors still debating how much upside remained. International investors’ overall positioning in Chinese assets remained “neutral to slightly underweight”, Fung added. While that left room for further allocation in theory, “in practice, additional inflows could be constrained by the stronger near-term return prospects offered by other markets, such as South Korea”, he said.