Hong Kong is experiencing an unprecedented boom in share sales, positioning itself to become the second-largest global market for such transactions for the first time since 2012. In the first half of 2025, the Asian financial hub saw proceeds from listings and additional share sales skyrocket to approximately US$33 billion, marking an impressive sixfold increase from the previous year. This surge is largely attributed to offerings from prominent electric carmakers like BYD Co. and Xiaomi Corp., alongside battery giants such as Contemporary Amperex Technology Co. Ltd. (CATL), which completed the world’s biggest new listing in 2025.

Despite ongoing global tensions, including tariffs and geopolitical concerns, investors have demonstrated a strong appetite for deals in Hong Kong. The city has hosted three of the four largest stock offerings globally in 2025, and equity strategists remain optimistic, with the Hang Seng Index emerging as one of the world’s best-performing indexes this year. This robust activity is setting the stage for a highly profitable year for investment bankers in the city.

A significant driver of Hong Kong’s success has been the influx of Chinese companies, particularly those with existing shares trading in Shenzhen or Shanghai, seeking additional listings. These 'A-H' deals have accounted for roughly three-quarters of Hong Kong’s US$13.4 billion in proceeds from first-time share sales in 2025. A notable example is battery giant CATL’s US$5.2 billion offering in May, which proceeded successfully despite being caught in US-China tensions, underscoring the ability of industry leaders to attract global buyers even in challenging environments. Bloomberg Intelligence forecasts that Hong Kong’s listing proceeds are poised to double, reaching a four-year high of over US$22 billion. Upcoming major deals include those from electric carmaker Seres Group Co., heavy-machinery maker Sany Heavy Industry Co., and pig breeder Muyuan Foods Co. In celebration of its 25th anniversary, Hong Kong Exchanges & Clearing Ltd. is even parading its iconic listing gong in a public 'gongmobile' tour.

Beyond Hong Kong, the broader Asia-Pacific region has also seen substantial growth, with first-half proceeds climbing nearly 30 percent to approximately US$100 billion in 2025. While Hong Kong leads the region, other markets exhibit varying trends. India, which spearheaded regional share sales last year, has seen its total proceeds stand at about US$20 billion, on track for a more than 20 percent drop in the first half following a stock-market rout. However, the benchmark Nifty 50 Index has recently rallied, showing signs of optimism that are translating into new deals, such as HDB Financial Services Ltd.’s US$1.5 billion initial public offering (IPO) and Tata Capital Ltd.’s anticipated US$2 billion IPO.

In Japan, share sale proceeds have risen to US$13.7 billion, on course for a 30 percent increase, aided by deals like the US$4 billion sale of Japan Post Bank Co. by its parent and JX Advanced Metals Corp.’s IPO, although the pace of deals slowed in the second quarter. South Korea has also witnessed a revitalization in its market, with the Kospi index becoming one of the region’s top performers after a recent presidential election ended months of leadership vacuum. This has encouraged more companies, including 'Baby Shark' creator Pinkfong Co., to pursue listings.

Despite the persistent complexity of global geopolitical situations, issuance activity across Asia remains robust. Experts like Sunil Dhupelia of JPMorgan Chase & Co. note increased comfort among global investors, leading them to reassess and increase exposure to the region. Rob Chan, head of Asia ECM syndicate at Citigroup Inc., affirms that issuance activity is not expected to slow down. Christine Xu of Linklaters suggests that future deals in Hong Kong will likely favor companies that primarily rely on Chinese domestic consumption, as they are better shielded from tariff effects and geopolitical pressures. The market appears to have largely absorbed the impact of tariffs, with ongoing geopolitical dynamics remaining the primary risk for market direction.