A total of 53 companies have been listed on the Hong Kong Exchanges and Clearing Limited (HKEX) so far this year, raising 157.8 billion HK dollars (around 20.16 billion U.S. dollars) and marking a year-on-year increase of 571 percent, data from the HKEX showed.
Among these companies, 48 are from the Chinese mainland, boosting the HKEX to lead the global IPO market.
"According to the HKEX, the number of companies waiting in line for IPOs has exceeded 500. The market generally expects this year to be a record-breaking year, with the number of listings exceeding 160 and total funds raised exceeding 320 billion HK dollars (around 40.86 billion U.S. dollars)," said Shen Hua, vice chairman of the Chinese Asset Management Association of Hong Kong (HKCAM).
Analysts say the IPO boom highlights two trends: first, many Chinese tech companies are leveraging Hong Kong's financial hub to access global capital; second, international investors are racing to capitalize on China's emerging productive forces.
Among the companies applying for listing, technology companies in artificial intelligence, high-end semiconductors, biomedicine and advanced manufacturing have become the absolute main force, with leading companies with market capitalizations of over 10 billion HK dollars, accounting for more than 70 percent.
"We are also pleased to see global capital begins to flow back to the Hong Kong market, especially as cornerstone investments by sovereign funds in IPOs increased from 18 percent in 2024 to nearly 40 percent now. Meanwhile, U.S. investment in A-shares and Hong Kong stocks has also reached a historic high," said Shen.
"Whether it's the booming IPO market or the increased recognition of Chinese assets by global investors, both reflect a gradual return of long-term funds--including sovereign wealth funds and pension funds--back to Hong Kong, investing real money as a vote of confidence," said Xing Ziqiang, chief China economist at Morgan Stanley.
Fifty-three companies listed on HKEX so far this year, raising over 157 bln HKD
Japan's reliance on U.S. economic policy is allowing foreign funds to acquire Japanese assets at bargain prices, according to Japanese economist Kazuhide Uekusa.
He warned that the government's economic and defense strategies prioritize foreign capital and political profits over public welfare, failing to bring true prosperity to ordinary citizens.
The Bank of Japan (BOJ) on Friday raised its policy interest rate by 0.25 percentage points to 1.25 percent, the highest in about 31 years, following a two-day board meeting.
According to Uekusa, the timing of the shift aligns perfectly with the interests of large American funds.
"The Takaichi Cabinet has been reluctant to raise interest rates, thus allowing the yen to continue to depreciate. I think this is actually equivalent to helping foreign capital purchase Japanese assets at a low price. However, U.S. Treasury Secretary Scott Bessent has recently made a clear adjustment to the policy direction of the U.S. dollar against the Japanese yen, promoting the appreciation of the Japanese yen. The reason is that some large funds in the United States have basically completed their investment layout in Japanese assets," said Uekusa.
Uekusa also said Japan cannot attempt to revitalize its economy by expanding military spending and supporting the defense industry, and such a military buildup strategy is unlikely to bring about true prosperity and stability.
"I think it is true that the Japanese economy has been stagnant for a long time. However, to expand military spending in an attempt to revitalize the economy is, in my opinion, an extremely foolish and even crazy move. To achieve peace and stability in Japan, the foundation should be to establish friendly relations with neighboring countries rather than military expansion. The reason why the Japanese government attaches so much importance to the military industry is that it can generate huge profits, and a part of these profits may flow back to political parties or political figures through various means. I don't think this is at all for the benefit of the people," he said.
Japanese economist criticizes gov't policies for enabling cheap asset sales to foreign funds
