On the evening of April 3, Dongpeng Beverage, which was listed on the Shanghai Stock Exchange, issued an announcement stating that it had submitted an application to the Hong Kong Stock Exchange of China to issue H shares and list on the main board of the Hong Kong Stock Exchange. According to statistics from Securities China reporters, this is the 14th A-share company that announced the filing of the Hong Kong Stock Exchange since 2025. If we include the H-share listing, there are 25 companies, including many leaders with a market value of 100 billion yuan.

Since the Hong Kong Stock Exchange announced last year that it would optimize the approval process for new listing applications, especially for qualified A-share companies, A-share companies are flocking to H-shares. Especially in the context of global focus on the main line of revaluation of China's science and technology assets, domestic scientific and technological innovation, overseas advantages, and celebrity leading companies are accelerating the pace of listing in Hong Kong stocks, which is expected to attract more attention in the international capital market.

A-share companies compete to submit statements

As of April 3, 14 A-share companies have stated that they have submitted H-share listing applications to the Hong Kong Stock Exchange. If the H-share listing is planned but has not yet submitted, there are 25, including 8 A-share star companies with a market value of over 100 billion yuan, including CATL, Hengrui Medicine, and Haitian Flavor Industry.

The above statistics do not even include the situation where Goertek plans to use its subsidiary to go to Hong Kong for IPO. In 2024, only 7 A-share companies submitted statements to the Hong Kong Stock Exchange throughout the year.

A-share companies planning to list on H shares in 2025

From the perspective of enterprise scale, the market value of A-share companies currently planning to go to Hong Kong is not small, many of which are industry leaders.

As of the close of April 3, among the 25 A-share companies mentioned above, CATL had a market value of 1070.4 billion yuan (RMB, the same below); followed by Hengrui Medicine, Haitian Flavor Industry, and Cialis, with market values ​​of 325.6 billion yuan, 226.1 billion yuan and 203.5 billion yuan respectively; Sany Heavy Industry, Dongpeng Beverage, and Lens Technology also had a market value of more than 100 billion yuan; among the remaining 15, only 3 had a market value of less than 10 billion yuan.

From the perspective of industry distribution, the number of companies related to advanced manufacturing and science and technology innovation industries accounted for a large proportion among the above-mentioned companies. According to Shenwan industry classification, among the 25 companies, there are 6, 4 and 3 in the electronics, power equipment, and pharmaceutical and biological industries, 2 in the communications and automobile industries, and 1 in the computer and mechanical equipment industries, accounting for 76% of the total, including Naxinwei and Guanghetong, which performed outstandingly in the technology market at the beginning of the year.

Wei Wei, chief strategy analyst at Ping An Securities, said that in the context of the upgrading of Sino-US technology game and the resonance of domestic favorable policies, the Hong Kong stock market is expected to become a financing hub and investment value highland for the technological innovation industry. Since the beginning of the year, the craze for technological innovation has not only pushed Hong Kong stocks to lead the world, but also rebounded in Hong Kong stock IPOs. The scale of Hong Kong stock refinancing has also seen significant growth due to BYD and Xiaomi's increase in R&D investment and accelerated business expansion. Against this background, it is necessary to pay attention to the important role played by Hong Kong stocks in financing technology innovation enterprises and the investment opportunities it may bring to the secondary market.

Policy optimization to protect escort

As mentioned above, A-share companies are not so enthusiastic about Hong Kong stock IPOs in 2024, but things changed in December 2024. In that month, a total of 9 A-share companies including CATL, Hengrui Medicine, Haitian Flavor Industry, including leading market value of 100 billion yuan, announced plans to list H shares, most of which have been completed to the Hong Kong Stock Exchange.

In October 2024, the China Securities Regulatory Commission and the Hong Kong Stock Exchange jointly announced that it will optimize the approval process schedule for the new listing application, further enhancing Hong Kong's attractiveness as a leading international new stock fundraising market. It is particularly mentioned that for eligible A-share companies (market value of HK$10 billion, complying with relevant laws and regulations within two fiscal years), the respective regulatory assessments of the two regulatory agencies will be completed within no more than 30 business days.

As more and more A-share companies or their subsidiaries plan H-share IPOs, on March 31, the China Securities Regulatory Commission also held a plenary meeting of the cross-departmental coordination mechanism for overseas listing filing management, and clearly proposed to further improve the quality and efficiency of overseas listing filing management and support Hong Kong to consolidate and enhance its position as an international financial center. The meeting emphasized that listing of domestic enterprises overseas is an important part of the high-level opening up of the capital market, and is of positive significance to supporting enterprises to integrate into the global economy, serve innovation-driven development strategies and high-quality economic development.

From the perspective of the system, the conditions for listing on the main board of the Hong Kong stock market are undoubtedly more flexible and loose, which is beneficial to companies that cannot meet the requirements of the A-share main board, and also means that companies that meet the requirements of the A-share main board are more compatible with the requirements of the Hong Kong stock market. At the same time, Hong Kong stocks have added exclusive channels for listing of technology companies in Chapter 18A and 18C, which is especially attractive to companies with high market value and relatively insufficient scientific and technological innovation attributes.

Public information shows that three companies have successfully entered the Hong Kong stock market with the help of Chapter 18C, namely Jingtai Holdings-P, Heisha Intelligent, and Yuejiang Robot. In addition, companies such as Xidi Zhijia, May Day Vision, and Yunji Technology have also recently submitted statements to the Hong Kong Stock Exchange with Chapter 18C.

Hong Kong stock financing has made rapid progress

On April 2, a report released by the Deloitte China Capital Market Service Department showed that in the first quarter of 2025, Hong Kong, China recorded 15 new stocks listed and raised HK$18.2 billion, compared with 12 new stocks listed and raised HK$4.7 billion in the first quarter of 2024. The number of new stocks increased by 25%, and the financing amount increased by 287%.

According to Wind data, most of the financing comes from mainland companies, including two tea drink companies, Mixue Group (HK$3.973 billion), Gu Ming (HK$2.03 billion), two metal-related companies, Chifeng Gold (HK$2.822 billion), Nanshan Aluminum International (HK$2.347 billion), one bank, Yibin Bank (HK$1.782 billion), and a toy maker Bruco (HK$1.925 billion).

Liu Xinqi, chief analyst of Guotai Junan, believes that since the second half of 2024, with the US interest rate cuts and the continued increase in domestic stable growth policies, the activity of Hong Kong stock trading has increased significantly, and the improvement of market liquidity has driven a sharp recovery in Hong Kong stock IPOs and refinancing. Mainland enterprises have increased their financing in Hong Kong. It is expected that projects such as Mixue Group's IPO and BYD share allocation will further increase the scale of Hong Kong stock equity financing in March.

Deloitte predicts that about 80 new stocks will be listed in the Hong Kong stock market in 2025, raising about HK$130 billion to HK$150 billion. These new shares will come from large A-share listed companies, leading mainland companies, Chinese stocks listed in the United States, companies from the Middle East and ASEAN countries, technology companies, especially from the AI ​​industry and medical and pharmaceutical companies.

"The Hong Kong stock IPO market has recovered, and the role of Hong Kong as a 'super contact' connecting the mainland and the international markets is highlighted." Zhang Yidong, global chief strategy analyst at Industrial Securities, pointed out that the year-on-year growth rate of the total IPO fundraising in Hong Kong stock market in 2024 was the first positive growth since 2021. A series of policy dividends from the Mainland and Hong Kong have improved the efficiency of Hong Kong stocks' IPOs, and the number of listed companies in Hong Kong has increased significantly. Especially in the case of large fluctuations in the capital market, rapid listing can help companies lock in financing windows, which is particularly important for the technology industry and new consumer companies.

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