Chinese firms turn to Hong Kong IPOs amid rising tensions with Washington

Chinese companies have withdrawn from listing in the U.S. this year amid rising tensions between Beijing and Washington, as well as increased regulatory scrutiny in the U.S. Data provider Dealogic noted that the number of Chinese IPOs in Hong Kong has increased this year.

According to Dealogic data, Chinese initial public offerings in the U.S. have plummeted 4% year-on-year in terms of deal value in 2025. The data provider also revealed that the IPOs have raised just $875.7 million from 23 deals this year, down 93% from the $13 billion across listings during the same period in 2021.

Hong Kong aims to become a global leader in listings in 2025

Chinese IPOs surged in 2021 to near record highs. Still, they slowed amid Beijing’s initiative to intensify supervision of domestic firms after the world’s leading transportation platform, DiDi Global, pushed its plans to go public in New York despite China’s objections. The ride-hailing operator initiated its delisting process less than six months after its initial public offering.

Dealogic data showed that Chinese IPOs in Hong Kong rose by 164% year-on-year. The listed companies managed to raise a total of $18.4 billion from 56 initial public offerings.

“Chinese listings in the U.S. have pretty much become non-existent since DiDi Global’s ill-fated IPO in the U.S. It will be increasingly challenging to receive a greenlight [from China to list in the U.S.], especially for companies that fall under China’s government-orchestrated strategic industries.”

-Perris Lee, Head of Equity Capital Markets for APAC at Mergemarket.

Lee said the challenge of Chinese firms listing in the U.S. has prompted them to shift towards listing in Hong Kong.

Hong Kong, which is on track to become the world’s largest listing destination this year, has seen a rise in IPOs boosted by a flurry of billion-dollar deals. Among the new listings is Contemporary Amperex Technology’s % $5.3 billion IPO and Zijin Gold’s $3.2 billion listing.

Eugene Hsiao, Head of China Equity Strategy at Macquarie, said the Asian financial hub has gained interest for IPOs due to a confluence of factors, including better fundraising conditions following Hong Kong’s supportive measures established in September last year.

He also attributed the increased interest in listings in Hong Kong to the boom in the technology and artificial intelligence industry, driven by the unexpected rise of Chinese startup DeepSeek.

Hong Kong also introduced a Technology Enterprises Channel in May to facilitate IPO approvals for specialist technology and biotech companies, particularly those already listed in the country. PwC forecasts that Hong Kong will see up to 100 IPOs this year, with total fundraising expected to exceed $25.5 billion. 

JPMorgan believes IPOs will surge in Q4 through H1 of 2026

Peihao Huang, Head of Equity Capital Markets for Asia Pacific at J.P. Morgan, acknowledged that expectations are high that momentum will continue into Q4. Huang added that the bank expects a very busy first half of 2026 as well, as Chinese firms listed in Hong Kong accelerate their pursuit of a dual listing on the mainland and a new IPO. 

He also acknowledged that investors have become optimistic about opportunities in Greater China, fueled by the strength of Beijing’s selective technologies, such as biotech and advanced manufacturing sectors. Huang said the selective technologies have attracted valuations in Chinese equities and have also prompted a cautious repositioning by global funds that have been underweight for years.

China has tight controls on its IPO processes, which have caused a snarl-up for Chinese companies interested in U.S. listings. The country halted Ant Group’s planned Hong Kong and Shanghai listing in 2020, less than 48 hours before what could have become the world’s largest IPO to date. 

Lee stated that Shein’s failed attempt to get listed in the U.S. revealed Beijing’s regulatory parameters for where its companies should be listed. Shein failed to list in New York but shifted its focus to a Hong Kong listing after its proposed London IPO failed to secure approval from Beijing.

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