Hong Kong overtakes US as top destination for Chinese IPOs in 2025

Hong Kong has overtaken the United States as the preferred venue for initial public offerings (IPOs) by Chinese companies, reflecting a significant shift in global capital markets as geopolitical tensions between Beijing and Washington continue to escalate.

According to the Chinese press, the return of investment flows to Asia has been driven by heightened uncertainty in US markets and increasing rivalry between the two superpowers.

Since the start of 2025, 46 Chinese companies have raised a combined $16.5 billion through IPOs in Hong Kong. In sharp contrast, only 16 Chinese firms have been listed in the US during the same period, raising a total of $740.9 million.

Market analysts note that ongoing tensions between China and the United States — spanning trade, technology, military, and financial sectors — are at the heart of this shift. The Trump administration’s intensified regulatory scrutiny has deterred many Chinese companies from pursuing listings on American exchanges.

High-profile firms, including Contemporary Amperex Technology (CATL) and Shein, are reportedly rethinking or postponing their US IPO plans due to the increasingly restrictive environment.

The growing political pressure in the US has also influenced investors’ behaviour. Both institutional funds and retail investors are showing reduced interest in Chinese equities listed on the New York Stock Exchange, amid calls from conservative lawmakers to curb financial exposure to Chinese enterprises.

Analysts believe this trend reinforces Hong Kong’s position as a leading financial hub in Asia, particularly for mainland Chinese firms seeking international capital while avoiding mounting political risks in the United States.

By Tamilla Hasanova