Hong Kong is perhaps the preferred offshore listing destination for mainland enterprises.

"In the first half of this year, the Hong Kong Stock Exchange (HKEX) completed 42 initial public offerings (IPOs), raising over HKD 107 billion—an increase of approximately 22% compared to all of last year, ranking first globally in terms of fundraising."

At the “Hong Kong Listing” thematic matchmaking session during the 2nd Zhejiang–Hong Kong Modern Professional Services Cooperation Conference, Mr. Xu Jingwei, Managing Director and Head of Global Listing Services at HKEX, stated that since April 2024, Hong Kong’s IPO market has remained red-hot. So far, over 200 companies are preparing to list on HKEX, with many A-share companies driving a new wave of “southbound” listings.

Currently, 19 Ningbo-based companies, including Shenzhou International, Sunny Optical Technology, and Haitian International, have successfully gone public in Hong Kong, collectively accounting for 80% of the total market value of all Ningbo enterprises listed overseas.

A “Super Springboard” for Global Expansion

A combination of favourable policies, regulatory liberalization, and corporate globalization strategies is a key driver behind the booming Hong Kong IPO market:

• In April 2024, the China Securities Regulatory Commission (CSRC) introduced five new measures to deepen capital market cooperation with Hong Kong, including support for leading mainland enterprises to list in Hong Kong.

• HKEX launched the “Fast Track for Tech Enterprises,” providing a streamlined review process for eligible A-share companies.

• Starting October 2024, to better meet the demand for “A+H” dual listings, HKEX will further optimize its listing framework, offering a fast-track approval schedule. Eligible A-share listed companies submitting complete application materials will, in principle, only go through one round of comments, with regulatory reviews completed within 30 working days.

The term “going global” has become a common theme among many A-share companies seeking a Hong Kong listing. Hong Kong is emerging as a critical gateway for this strategic expansion. For example, Contemporary Amperex Technology Co., Ltd. (CATL) plans to allocate around 90% of its Hong Kong IPO proceeds toward the first and second phases of its Hungary project. Hengrui Medicine explicitly stated that its Hong Kong listing is a vital step in its global strategy.

"The concept of 'going global' has been redefined today," said Shen Jiaying, Vice President of the Zhejiang Chamber of Commerce in Hong Kong. “Strategically, Hong Kong serves as a super springboard for global corporate expansion. On the capital side, the return of U.S.-listed Chinese stocks has become the norm, and Hong Kong offers a safe harbour for offshore financing. Internationally, HKEX’s rules-based IPO process gives companies a strong endorsement for entering the global stage while also enhancing their competitiveness in talent acquisition.”

Additionally, Lau Ka-kit, Executive Director of Frost & Sullivan, pointed out that the Hong Kong IPO market is currently active in both fundraising and investment. Tech companies, in particular, are enjoying strong valuations. More importantly, A-share listed companies with solid market standings are likely to have their value more accurately discovered and reasonably priced in Hong Kong.

Cornerstone investors—those institutional investors (e.g., sovereign wealth funds, pension funds, and major asset managers) who subscribe to a set number of shares at a fixed price during the IPO or pre-IPO phase—are vital to a successful Hong Kong listing. Their presence, quantity, and quality significantly impact IPO outcomes.

"In the past two years, mainland companies going public in Hong Kong could only attract a limited range of cornerstone investors, mostly local government-backed funds. However, since early this year, we’ve seen long-term international funds returning to Hong Kong stocks. They are not only active in the secondary market but are also participating in IPO cornerstone placements," said Jiang Jiali, Vice President of Global Listing Services at HKEX.

Data shows that in the first half of 2025, eight companies achieved “A+H” listings, raising a total of USD 10.1 billion. These companies have performed strongly post-IPO, with share prices rising by an average of 30%. Notably, CATL’s H-share valuation has exceeded its A-share counterpart, creating an “inversion” in value.

Tech Companies from Ningbo Rush to Enter

In recent years, the sectoral composition of Hong Kong IPO fundraising has shifted significantly. From 2014 to 2017, the market was dominated by finance (49%) and marginally represented by IT (6%). From 2018 to 2024, information technology rose to become the largest sector (28%), followed by consumer (25%) and healthcare (18%), with finance dropping to just 7%.

According to Jiang Jiali, HKEX has been continuously adapting its reforms to align with market trends since 2018, providing broader financing paths for tech innovators. In 2023, it launched a new chapter for Specialist Technology Companies and further optimised it in 2024, focusing on strategic emerging industries—areas that align well with Zhejiang’s industrial strengths.

HKEX has simplified listing for tech-focused R&D firms by implementing Chapters 18C and 18A and introducing confidential filing channels like the “Fast Track for Tech Enterprises.” Notable beneficiaries include:

• XtalPi (USD 133 million),

• Black Sesame Technologies (USD 133 million),

• Dobot (USD 107 million).

Currently, several Ningbo enterprises are queuing up for IPOs on HKEX, including Joyson Electronics, AUX Electric, and Green Holdings Group. Shuanglin Group is also planning to issue H-shares and list on the HKEX Main Board. Both Joyson and Shuanglin are already listed on the A-share market and are involved in humanoid robotics—a key strategic sector. Joyson is currently supplementing its HKEX filing.

Other high-tech H-share candidates from Ningbo—such as Ocean Fresh (a digital marine economy service provider) and Sansheng Biotech (a leader in animal reproductive hormones)—are also rapidly entering the scene.

Two-Way Investment Between Ningbo and Hong Kong

It is worth noting that the connection between Ningbo and Hong Kong in capital markets is not limited to Ningbo firms listing in Hong Kong. Ningbo’s strong manufacturing and innovation foundation is also attracting investment from Hong Kong entrepreneurs.

"We are very interested in Ningbo," said Tsang Ho-ming, COO of Aerosim (HK) Limited, which specializes in artificial flight simulators. “With the rapid rise of the low-altitude economy, Ningbo's manufacturing strength and supportive ecosystem make it an attractive destination. Many of our peers have already settled here, and we hope to set up our production line here as well.”

梁达文, General Manager (Asia) of Zhejiang Skybase Technology Co., Ltd., who was born in Hong Kong, shared that his team conducted multiple field visits before choosing Ningbo. “The low-altitude economy is a strategic emerging industry, comparable to the early days of the automotive sector over a century ago. Ningbo holds a strong advantage in this field,” he said.

In April this year, Yinzhou District became Zhejiang’s only “First Fly Zone” pilot for low-altitude economy, hosting Skybase’s Xiangshan Aviation Camp. The company also owns the “Raiman” brand, which offers a complete line of commercial and industrial service robots (for cleaning, disinfection, food delivery, and more), exported to 55 countries and regions worldwide.

Xu Jingwei concluded by stating that HKEX will continue to leverage Hong Kong’s strengths to serve national needs, pushing ahead with market reform and exploring new pathways for capital upgrading in support of high-quality development for enterprises in Zhejiang and Ningbo.

Source: www.cnnb.com.cn

Reporter: Zhang Heng

Editor: Ye Ke