Hong Kong's initial public offering market raised US$22.4 billion in the first quarter of 2026, its strongest opening quarter since 2021, according to data released this month by the Hong Kong Exchanges and Clearing (HKEX). The figure marks a 187% year-on-year increase from Q1 2025 and puts the exchange back among the world's top three listing venues for the first time in four years.
A total of 31 companies completed primary listings on the main board between January and March, led by the dual listing of Shenzhen-based battery maker CATL, which raised US$5.3 billion in what was the world's largest IPO of the quarter. Food-delivery operator Meituan Select, Chinese logistics firm SF Express Asia, and Hong Kong biotech firm Insilico Medicine completed the other megadeals of the period, each raising above US$1 billion.
"The pipeline tells us the rebound is not a single-quarter effect," Bonnie Chan, chief executive of HKEX, said at a press briefing in Central on 15 April. "We currently have 126 active applications, of which 44 are from mainland Chinese issuers pursuing an A-to-H listing." Chan confirmed the exchange expects full-year 2026 IPO proceeds to exceed US$60 billion, which would be the highest annual total since 2020.
The rebound reverses a prolonged slump. Hong Kong raised just US$6 billion across the whole of 2022 and US$5.9 billion in 2023, its worst two-year run since the late 1990s. The recovery is being driven by three factors, according to a report published by Deloitte China on 10 April: the return of mainland Chinese issuers following mainland regulator approvals under the revised Securities Law; improved liquidity from Stock Connect southbound flows, which averaged HK$41 billion per day in Q1; and specific listing rule changes introduced by HKEX in September 2025 that shortened review timelines for secondary and dual-primary listings from an average of 157 days to 94 days.
The China Securities Regulatory Commission (CSRC) approved 38 overseas listing applications in the first three months of 2026, up from 14 in the same period of 2025. Of the 38, 29 were destined for Hong Kong and 9 for US exchanges.
Analysts at Goldman Sachs, in an investor note dated 12 April, attributed the shift partly to continued uncertainty around US listing requirements for Chinese firms under the Holding Foreign Companies Accountable Act. "Chinese issuers that might historically have dual-listed in New York are choosing a Hong Kong primary and a separate London secondary instead," the note said. Goldman estimates US-listed Chinese firms completed only US$2.1 billion in new primary offerings during Q1 2026, compared with US$19.8 billion from the same issuer universe on HKEX.
Secondary market performance of recent Hong Kong listings has also improved. Of the 31 Q1 listings, 22 were trading above their offer price as of 17 April, with an average first-month gain of 12.8%, according to Bloomberg data. That compares with an average first-month decline of 3.2% for Hong Kong listings completed during 2024.
Not all segments have recovered equally. Real estate and construction issuers remained largely absent from the Q1 pipeline, with only one property-related deal completed — a REIT spin-off raising US$180 million. The HKEX listing committee rejected or deferred 8 applications from the sector during the quarter, citing concerns over asset valuations. Chinese developer Sunac China Holdings, which had filed for a restructuring-linked relisting in November 2025, saw its application returned for revision on 4 April.
The rebound places Hong Kong ahead of Shanghai (US$11.2 billion Q1 IPO proceeds) and Shenzhen (US$8.7 billion) among Greater China venues. On a global basis, Hong Kong now ranks behind only the Nasdaq (US$28.6 billion) and ahead of the New York Stock Exchange (US$18.9 billion).
The Hong Kong government's Financial Secretary, Paul Chan, welcomed the figures in a LegCo statement on 16 April, noting that IPO-related financial services activity added an estimated HK$14 billion to the territory's Q1 GDP. Chan also announced a consultation on extending tax concessions for family offices that participate in cornerstone investments, which would begin in June.
HKEX shares closed at HK$326.40 on 17 April, up 34% year-to-date and near a two-year high. The exchange will publish full Q1 2026 financial results on 30 April.