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Here’s what you need to know about China in the past 24 hours

Since Hong Kong Exchanges and Clearing (HKEX) reformed its listing rules in 2018, 33 Chinese firms listed in the U.S. have debuted in Hong Kong, accounting for over 70 percent of the total market value of all U.S.-listed Chinese equities.

In 2025, Hong Kong’s IPO market is booming, with geopolitical tensions driving more leading firms from the Chinese mainland to seek secondary listings in Hong Kong.

In an exclusive interview with the 21st Century Business Herald, Bonnie Chan, CEO of HKEX, underscored the exchange’s readiness to accommodate mega-listings, categorically dismissing liquidity concerns.

“The HKEX is absolutely confident in having these mainland giants," she said. "Quality enterprises attract capital naturally, and our market’s depth is proven."

The numbers speak for themselves: Hong Kong’s average daily trading volume hit HK$242.3 billion in the first five months of 2025, double the 2024 figure.

Last year, the market set a record HK$650 billion daily turnover, while 2025’s IPO proceeds of HK$773.46 billion in the first five months nearly matched 2024’s full-year total.

Notable debuts include CATL’s H-share listing, which became the world’s largest IPO of the year, attracting top global investors like Kuwait’s sovereign wealth fund.

Market focus now centers on whether HKEX will relax dual-class share restrictions. Of 27 U.S.-listed Chinese firms with over $1 billion in market cap, 22 currently fail to meet the exchange’s ownership rules.

Chan vowed more flexibility, stating HKEX reviews listing rules regularly "to serve the real economy," citing the "Technology Enterprises Channel" that has so far guided over 20 innovative firms through pre-listing processes.

The A+H listing model is gaining steam, fueled by policy support. China has optimized overseas listing procedures, while a new rule allowing Greater Bay Area firms listed in Hong Kong to dual-list in Shenzhen (H+A) promises stronger cross-market synergy.

"Liquidity begets more liquidity," Chan noted, highlighting CATL’s listing as a case where Hong Kong and A-share markets boosted each other’s trading activity.

Driven by economic resilience in the Chinese mainland and the intensifying trend of "de-dollarization" in the global market, Hong Kong has seen robust capital inflows. International placements for CATL’s H-share IPO accounted for 92.5 percent, with 23 global corner investors joining the offering.

"Investors are rediscovering Chinese assets as they reassess their portfolio," Chan said, emphasizing Hong Kong’s role as a gateway for global capital eyeing non-U.S. markets.

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Editor: LI Yanxia

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