The Hong Kong stock capital market is experiencing its most active period in years. Billions of dollars in transactions have lifted market sentiment and raised expectations for more deals in the future.
Kai Cheung, head of equity capital markets for Morgan Stanley in Asia-Pacific, said: “I think we haven’t seen people so excited about Hong Kong and the Chinese mainland for a long time.”
Data compiled by Bloomberg shows that as of 2025, the amount of funds raised through initial public offerings (IPOs) and additional share issues in Hong Kong has reached $26.5 billion, compared with just $3.8 billion a year ago, marking the highest level since the record set in 2021.
The IPOs of three Chinese giants, each raising more than $5 billion, have fueled the stock market boom. The latest was the listing of battery maker Contemporary Amperex Technology Co., Ltd., the world’s largest IPO this year. Before that, Xiaomi Corporation and BYD Company Limited issued new shares worth over $11 billion in March.
If fast-fashion giant Shein Group Ltd. opts for an IPO in Hong Kong rather than London, it will be another high-profile deal for the city.
Despite the global turmoil, the intensifying threat of trade wars and the persistently sluggish demand in China, investors are still scrambling to get in, as valuations remain attractive.
James Wang, head of equity capital markets for Asia (excluding Japan) at Goldman Sachs, said: “There is a broader rebalancing going on globally, not only in terms of trade flows but also in terms of capital allocation. We are seeing capital gradually flowing out of the US and into some emerging markets, including India and Hong Kong.”
Marvin Chen, a strategist at Bloomberg Intelligence, said that as Chinese companies shift their IPOs to Hong Kong, the city is likely to benefit from the tense relationship between Washington and Beijing, which could help boost market sentiment. Stephen Roach, the former chairman of Morgan Stanley Asia, also holds the same view.
A significant portion of the listing channels in Hong Kong is composed of mainland listed companies that hope to issue stocks in Hong Kong. These companies are supported by regulatory authorities for such transactions, and the financing speed in the onshore market remains slow.
What is rare about CATL is that its share price is higher than that on the Shenzhen Stock Exchange. Since its listing in Hong Kong in May, it has risen by about 16%. Jiangsu Hengrui Pharmaceuticals Co. raised $1.3 billion in its Hong Kong listing last month. Its share price on the first day of trading on the Shanghai Stock Exchange was also once higher than its A-share. This may further encourage companies listed in China to consider listing in Hong Kong.
Shi Qi, deputy head of the capital markets department of China International Capital Corporation Limited, said, “The listing of CATL has brought positive momentum to the Hong Kong market. We suggest that it is a good time for our clients to advance their capital market plans now.”
Technical analysis:
Gold: The yellow sweeping liquidity area we provided yesterday was below 3339, and the buy stop area was at 3349. The price dropped to the lowest point of 3333 overnight and then rebounded significantly, rising to the highest point of 3372 this morning. The reverse buy we reminded through the plugin after the break yesterday was very effective. For today, continue to maintain the combination of yellow and green. For detailed positions, please consult the plugin.
The plugin is updated from 12:00 to 13:00 every trading day. If you want to experience the same plugin as shown in the picture, please contact V: Hana-fgfg and note “666” in the message.
Nasdaq: After the overnight liquidity sweep, it did not break below the lower limit of the yellow range, so the sell stop was not triggered. Add a rebound pullback sell at the lower level within the day. For detailed positions, please consult the plugin.
(NASDAQ 15-minute chart)
The plugin is updated from 12:00 to 13:00 every trading day. If you want to experience the same plugin as shown in the chart, please contact V: Hana-fgfg and note “666” in the message.
Crude oil: The breakout and pullback buy operation we suggested through the plugin yesterday only started to be executed this morning. Currently, we recommend holding on. If you want to open a new position, you need to continue to pay attention to the confirmation of the breakout and pullback at a smaller time frame. For detailed positions, please consult the plugin.
(Crude Oil 15-Minute Chart)
The plugin is updated from 12:00 to 13:00 every trading day. If you want to experience the same plugin as shown in the picture, please contact V: Hana-fgfg and note “666” in the message.
Today’s key economic data and events to focus on:
16:30 UK May Markit/CIPS Services PMI
20:15 US May ADP Employment Change (thousands)
At 20:30, Atlanta Fed President Bostic and Federal Reserve Governor Lisa Cook will attend the “Fed Listens” event.
21:45 Canadian overnight target rate
22:00 US May ISM Non-Manufacturing Purchasing Managers’ Index
