Hong Kong SFC: IPO Fundraising Surges Over 610% Year-on-Year to HK$128 Billion in First Seven Months

Stock News
Yesterday

Hong Kong's Securities and Futures Commission (SFC) released its quarterly report for April to June 2025, highlighting the robust performance of Hong Kong's initial public offering activities and securities market, demonstrating Hong Kong's competitiveness as a premier international financial center.

In the first seven months of this year, Hong Kong has solidified its global leadership position in the new listings market. The city recorded 51 initial public offerings, with fundraising amounts surging over 610% year-on-year to HK$128 billion. As of the end of July, more than 220 IPO applications are under review.

To facilitate listings by specialist technology companies and biotechnology firms, the Hong Kong SFC and Hong Kong Exchanges and Clearing Limited jointly announced the launch of the "Tech Express Lane" in May, providing the option to submit listing applications on a confidential basis.

Hong Kong's securities market demonstrated its characteristic resilience during extreme volatility in early April, maintaining orderly and normal operations. Subsequently, the Hang Seng Index rebounded strongly, reaching its highest level in over three years. The market's average daily turnover in the first seven months also jumped 85% to HK$243.7 billion.

In the second quarter, the Hong Kong SFC received 16% more license applications year-on-year, further confirming the market's robust development.

Additionally, the asset and wealth management industry recorded strong growth during the quarter, with assets under management of funds incorporated in Hong Kong growing steadily by 39% year-on-year, with money market funds continuing to record capital inflows. The number of open-ended fund companies increased significantly by 56% year-on-year, while the average daily turnover of SFC-authorized exchange-traded funds (ETFs) surged 135.5% year-on-year during the quarter.

SFC Chief Executive Officer Julia Leung stated: "Hong Kong's capital markets achieved outstanding results during the quarter, continuing last year's growth momentum, with particularly strong performance in asset and wealth management in terms of assets under management and capital inflows. The SFC will continue to deepen connectivity, promote innovation, and strengthen multi-currency development to create more opportunities for capital markets."

Furthermore, the Hong Kong SFC strengthened connections with mature and emerging overseas markets by signing multiple memoranda of understanding during the quarter. The SFC signed a memorandum of understanding with the Central Bank of Ireland in May, after which the first active ETF was cross-listed in Hong Kong in July, investing in the master ETF in Ireland. Additionally, the Hong Kong SFC held bilateral meetings with the Capital Market Authority of Saudi Arabia in Hong Kong in June to strengthen bilateral ties and co-hosted roundtable discussions for asset management companies to explore cooperation opportunities.

Regarding digital assets, the number of SFC-authorized virtual asset spot ETFs increased from six to nine. To further expand the variety of virtual asset products, the Hong Kong SFC became the first in the Asia-Pacific region to approve three virtual asset spot ETFs to participate in staking activities under appropriate investor protection measures.

As of the end of July, the number of SFC-licensed virtual asset trading platforms has increased to 11, while 57 licensed corporations are permitted by the Hong Kong SFC to provide virtual asset trading services. To build a comprehensive ecosystem, the Hong Kong SFC has also jointly launched consultation with the Financial Services and the Treasury Bureau on proposed legislation to regulate virtual asset dealers and custodians.

While promoting development, the Hong Kong SFC continues to prioritize investor protection as always. In August, the Hong Kong SFC and the Hong Kong Monetary Authority issued a joint statement warning the public against market speculation related to stablecoin concepts. The SFC also provided guidance to licensed institutions on preventing impersonation fraud and unauthorized trading during the quarter, while responding to actions by the International Organization of Securities Commissions (IOSCO) by appealing to online platform providers to combat scams and fraud.

The Hong Kong SFC also participated in IOSCO's "Global Action Week Against Illegal Financial Influencers" to combat illegal activities by financial influencers.

To maintain market integrity and stability, the Hong Kong SFC took joint action with the Independent Commission Against Corruption in July, arresting two former senior executives of a listed company suspected of market manipulation through corrupt practices involving the company's shares.

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