Hong Kong is on track to overtake Nasdaq and the New York Stock Exchange as the world’s top IPO venue this year, as Chinese companies fuel a dramatic rebound in equity fundraising on the exchange, CNBC reports. Listings surged eightfold to USD 14 bn in 1H 2025 on the Hong Kong Stock Exchange — the highest since 2021 — as firms rushed to tap resurgent investor demand, according to Dealogic data.

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The momentum will likely continue into 2H: Some 90-100 IPOs are expected to bring in upwards of USD 25.5 bn in proceeds in 2025, according to PwC.

Secondary listings from China are fueling the rebound: Much of the momentum stems from a wave of secondary listings by mainland firms, seeking to diversify funding sources, with at least 40 of the 200+ IPO candidates already listed on Chinese exchanges, according to Wind data. In May, Chinese battery giant CATL raised over USD 5 bn in a Hong Kong secondary listing — the largest such transaction globally this year.

Hong Kong’s rally and the influx from mainland China is also fueled further by the arrival of DeepSeek at the start of the year. Paired with stilted growth from China’s CSI 300, mainland investors have increasingly looked to better returns on equities in Hong Kong instead.

Beijing’s regulatory push is another key tailwind: Officials have fast-tracked offshore IPO approvals for qualified tech firms, while Hong Kong’s new Tech Enterprises Channel, launched in May, accelerates listings for AI and biotech companies. These policies “have provided a much-needed shot in the arm,” Dealogic’s Perris Lee said. Hong Kong is now seen as more “inclusive” of emerging sectors, BNP Paribas’ Wei Li added, making it a draw for firms with global ambitions.

It’s also benefitting from the shift away from the US amid geopolitical tensions and delisting risks. Despite this, New York’s exchanges — NYSE and Nasdaq — were bigger than Hong Kong overall in 1H, with some USD 16.2 bn in listings, according to PwC.

A sharp reversal from 2024: In December, Hong Kong’s Hang Seng stock market dropped 1.4% amid a sea of red across Asian indices, with China’s CSI 300 down 0.9% and Japan’s Nikkei off 1.2%, as investors weighed Beijing’s stimulus pledges against sluggish growth.

TASI

11,244

+1.0% (YTD: -6.6%)

MSCI Tadawul 30

1,443

+1.4% (YTD: -4.4%)

NomuC

27,288

-0.3% (YTD: -13.3%)

USD : SAR (SAMA)

USD 3.75 Sell

USD 3.75 Buy

Interest rates

5.0% repo

4.5% reverse repo

EGX30

32,820

+0.4% (YTD: +10.4%)

ADX

9,982

0.0% (YTD: +6.0%)

DFM

5,753

+0.1% (YTD: +11.5%)

S&P 500

6,279

+0.8% (YTD: +6.8%)

FTSE 100

8,823

0.0% (YTD: +8.0%)

Euro Stoxx 50

5,289

-1.0% (YTD: +8.0%)

Brent crude

USD 68.30

-0.7%

Natural gas (Nymex)

USD 3.39

-0.7%

Gold

USD 3,347

+0.1%

BTC

USD 108,125

-0.1% (YTD: +15.6%)

Sukuk/bond market index

913.01

+0.1% (YTD: +1.2%)

S&P MENA Bond & Sukuk

145.8

-0.1% (YTD: +4.2%)

VIX (Volatility Index)

17.48

+6.7% (YTD: +0.8%)

THE CLOSING BELL: TADAWUL-

The TASI rose 1.0% last Thursday on turnover of SAR 5.6 bn. The index is down 6.6% YTD.

In the green: Cenomi Retail (+9.9%), Saudi Ceramics (+6.3%) and HB (+5.6%).

In the red: Alrajhi Takaful (-2.9%), SIECO (-2.5%) and Ades (-2.3%).

THE CLOSING BELL: NOMU-

The NomuC fell 0.3% last Thursday on turnover of SAR 23 mn. The index is down 13.3% YTD.

In the green: Albattal Factory (+17.2%), Jana (+14.0%) and Mulkia (+8.0%).

In the red: Alqemam (-10.2%), Qomel (-6.3%) and Naas Petrol (-6.1%).

CORPORATE ACTIONS-

Saudi Fisheries Company submitted an application to the Capital Market Authority for a capital increase via a new rights issue worth SAR 334.9 mn, raising the company’s operating capital to SAR 401.9 mn, according to a Tadawul disclosure. The capital hike will be used to support the company’s strategic and future plans.

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