IPOs are important creators of new millionaires and therefore important for private banks, advisors and wealth managers to track in the pursuit of new clients. They also can give a barometer of the vigour of a financial centre more generally. On that reckoning, Hong Kong is in rude health.

The number of listed companies in regions such as North America and Europe may have shrunk, but in Asia, initial public offerings continue to be brisk, with Hong Kong regaining the crown in 2025 for the first time since 2019.

Figures from KPMG showed that there were more than 300 active IPO applications in the pipeline at 7 December, including 92 active A+H listing applicants.

Funds raised in Hong Kong’s IPOs are expected to reach HK$272.1 billion ($34.9 billion) across 100 listings, covering a variety of entities, including trusts. A record 17 A+H listings of large firms were completed in 2025, the highest number on record. Among them, the world’s largest EV battery manufacturer raised HK$41.0 billion through its A+H listing, making it the largest IPO globally in 2025.  

The findings came from KPMG’s latest Chinese Mainland and Hong Kong IPO Markets 2025 Review and 2026 Outlook.

In 2025, global IPO markets raised $158.4 billion across 1,227 deals, an 18 per cent rise in funds raised and a 4 per cent drop in deal volume compared with 2024. 

Hong Kong was followed by US stock exchanges in second and third place, which saw their combined fundraising grow by 18 per cent year-on-year. Rounding out the top five were the National Stock Exchange of India and the Shanghai Stock Exchange, securing the fourth and fifth places, respectively.

Liquidity events bonanza
Initial public offerings are important minters of new high net worth and ultra-HNW individuals – liquidity events that wealth managers track. The data comes amid a continued shift towards private from listed equity markets, but the figures also show that the trend does not necessarily mean that IPOs are not important. 

At a media briefing in London yesterday, UK private bank Brown Shipley, taking data from various sources, noted that since 2000, the number of listed German and US business has contracted 42 per cent; UK listed firm numbers have dropped 34 per cent; French listed firms have shrunk by 62 per cent, and in the Netherlands, the decline is dramatic – 74 per cent. For the eurozone, the number has fallen 19 per cent, while there are 18 per cent fewer Swiss listed firms.

In London, the city’s stock market has languished in terms of IPOs, prompting UK finance minister Rachel Reeves to enact a three-year suspension of stamp duty tax on share trading post-IPO. The vigour of stock markets is still seen as an important health indicator for jurisdictions. 

“Key global IPO markets have trended upwards in 2025 with Hong Kong’s threefold increase in funds raised making it the largest single contributor to the global IPO market’s recovery and reaffirming its status as a leading international financial centre,” Paul Lau, partner, head of capital markets and professional practice, KPMG in China, said. “Buoyed by this momentum and a backlog of potential IPO candidates, we expect this upward trend to continue into 2026. In particular, the pace of AI-related listings is poised to accelerate as the technology matures and is adopted more widely across various industries.”

The A-share market is continuing its steady development; it is expected to raise RMB163.7 billion ($23.17 billion) across 130 deals, a 23 per cent growth in funds raised while deal volume remained stable compared to 2024. 

The Shanghai Stock Exchange STAR Market launched a science and technology innovation growth tier in July.

Irene Chu, partner, head of new economy and life sciences, Hong Kong KPMG in China, said: “The A-share IPO market posted steady gains in 2025. The 15th Five-Year Plan deepens the reform for China’s capital markets, with inclusiveness and coordinated investment and financing at the core of market reforms. As these strategic priorities take hold, we expect the authorities to prioritise and sustain their efforts to foster steady, high-quality growth in the A-share market for years to come.”

In Hong Kong, the private company space far outweighs those that are listed. In October this year, there was a total of 151,226 incorporated companies, and 70 listed ones, according to Hong Kong’s Companies Registry.