26 Feb, 2026
Hong Kong Exchange aims to strengthen position as leading global IPO destination
By John Wu and Yuvraj Singh
Hong Kong Exchanges and Clearing Ltd. expects its strong pipeline of initial public offerings to strengthen its position as a leading global destination for equity fund raising in 2026.
The exchange hosted 119 IPOs in 2025, through which companies raised an aggregate HK$286.9 billion. This was driven by strong interest and increased participation of international and mainland Chinese investors. HKEX, as the exchange operator is known, ended the year with 345 active IPO applications, the highest in at least eight quarters.
"While we expect volatility to persist amid the prevailing macro landscape in 2026, we also see cause for optimism in capital markets as global investors adjust to the ongoing uncertainty of an increasingly multipolar world by seeking diversification and risk management opportunities in Asian, and specifically [Mainland] Chinese, assets," Bonnie Y Chan, HKEX chief executive said in a Feb. 26 press release following the full-year results.
HKEX grew by 14.7% year over year, to total HK$4.34 billion in the fourth quarter of 2025. This was driven by an increase of 10.8% in core business revenue, which totaled HK$6.67 billion, the release said.
Record earnings
Across the year, core business revenue rose 30.3% to HK$29.16 billion, while net profit rose 36.0% to HK$17.75 billion. Each was a second-consecutive-year record, the results release said.
"It was a year of momentum, progress and transformation for the group, as ongoing reforms to our product ecosystem and market microstructure ensured we captured global investor trends, including the diversification of global capital and the surge in Asian innovation," Chan said.
The China Securities Regulatory Commission (CSRC) and the State Council, the top administrative body in mainland China, announced rules in 2024 to improve the quality of new listings by enhancing sponsor and exchange responsibilities. Simultaneously, mainland China companies are being encouraged to seek fundraising opportunities in financial centers outside of the mainland, mainly Hong Kong, especially in the form of A+H listings.
A+H listings refer to companies listed on mainland bourses that sell shares in Hong Kong, where they are given an accelerated application timeframe by Hong Kong's Securities and Futures Commission.
Policy landscape
Financial empowerment is one of the major themes intended to attract businesses, capital, and talent to drive a new round of economic growth, Paul Chan Mo Po, Hong Kong Financial Secretary, suggested in the 2026-27 Budget announced on Feb. 25.
"This budget injects strong evolutionary momentum into Hong Kong's capital market," said Edward Au, southern region managing partner at Deloitte China, in a Feb. 25 email.
By optimizing the listing system, shortening the settlement cycle, and implementing paperless securities, the government is precisely "speeding up, increasing volume, and reducing costs" for the market, Au said, adding, these measures will consolidate Hong Kong's strategic position as a leading global fundraising platform.