An increasing number of Chinese mainland enterprises are leveraging Hong Kong initial public offerings (IPOs) to fuel their global expansion, with the financial hub serving as a vital gateway to overseas capital and markets, according to industry experts.

Chinese electric vehicle (EV) battery maker Contemporary Amperex Technology (CATL) on May 20 listed on the Hong Kong Stock Exchange.

CATL’s Hong Kong listing attracted a diverse range of investors from 15 countries and regions, including sovereign wealth funds, industrial investors, and long-term institutional investors. The listing process was completed in just 128 days.

CATL announced allocation results showing that, before the exercise of the overallotment option, the Hong Kong public offering was oversubscribed by about 150.2 times, raising a total of approximately 35.66 billion HK dollars (4.55 billion U.S. dollars), with net proceeds of 35.33 billion HK dollars after deducting listing expenses.

“We have numerous partners, suppliers, and customers overseas. A Hong Kong listing would significantly enhance our company’s transparency and strengthen global understanding of our operations,” said Wang Hongbo, Chief Investment Officer of CATL.

For mainland companies, a Hong Kong listing provides not only continuous financing channels but also significantly boosts international visibility and influence, facilitating partnerships with global firms.

“A group of globally competitive mainland enterprises is accelerating internationalization through Hong Kong’s capital market. Market observations show that some high-quality H-shares now command higher valuations than their A-share counterparts, reflecting international investors’ strong recognition of these companies’ growth prospects,” said Ronald Wan, a member of the Hong Kong Securities and Investment Institute.

Data shows the Hang Seng Index and Hang Seng Technology Index both rose over 15 percent this year, ranking among the world’s top performers. The average daily turnover of Hong Kong stocks increased 37 percent year on year, reflecting strong market activity.

“Innovative industries provide excellent global investment opportunities. During my recent trips to Europe, the United States, and the Middle East, I observed strong interest from overseas investors in companies applying for Hong Kong listings,” said Bonnie Chan, CEO of Hong Kong Exchanges.

The stock market of the Hong Kong Special Administrative Region is seeing a surge in listings from the mainland since the beginning of this year, demonstrating growing confidence among businesses in Hong Kong as a key capital-raising hub.

In May alone, four A-share companies successfully debuted on the Hong Kong Exchanges and Clearing Limited (HKEX).

According to China International Capital Corporation Limited (CICC), as of the end of May this year, the HKEX had received 28 companies from the mainland to list. In May alone, the total funds raised from new stock offerings in the Hong Kong market reached 56.1 billion HK dollars (about 7.15 billion U.S. dollars), the highest monthly total since March 2021.

“As of June 2, 2025, the total amount raised from initial public offerings this year had surpassed 77.6 billion HK dollars (about 9.89 billion U.S. dollars), nearing 90 percent of the total raised in the whole year of 2024,” said Liu Gang, chief strategist at CICC.

As of now, a total of 165 companies from the mainland are in line to list on the HKEX, marking a significant increase from nearly 80 companies in mid-January.

Among these companies are A-share firms seeking a secondary listing at the HKEX, as well as leading A-share companies spinning off subsidiaries to list in Hong Kong. The most anticipated of these firms are unicorn companies and unlisted emerging tech companies, which cover various sectors including consumer goods, renewable energy, biomedicine, and autonomous driving.

“Many companies, including emerging players in artificial intelligence, are working hard for listing on the HKEX. Enterprises from the mainland are demonstrating strong vitality in technological innovation, with new companies emerging in various fields at different stages. This has created a continuous reserve of potential listings,” said Bai Ren, executive director of the Bank of China International Holdings (BOCI) Securities Limited.