Hong Kong’s IPO market ‘exceeds’ HK$140 billion amid renewed gold trading push

Hong Kong’s initial public offering (IPO) market has raised more than HK$140 billion (US$17.9 billion) as of April, maintaining its global lead, the city’s finance chief has said, while indicating a renewed push to develop gold trading amid rising demand for risk diversification.Financial Secretary Paul Chan Mo-po said on Sunday that Hong Kong remained the world’s top IPO fundraising hub as of last week, citing a growing number of high-quality companies using the city’s strong financing platform to drive global expansion.“The developments prove that despite external volatility, with the tireless efforts of the government and the industry, the momentum of Hong Kong’s financial market is unstoppable,” Chan said.He added that the average daily turnover on the Hong Kong stock exchange had exceeded HK$280 billion since March, up slightly from HK$276.7 billion in the first quarter.According to LSEG Data and Analytics, a total of 37 companies raised about US$13.26 billion on the exchange’s main board in the first quarter – a 453 per cent increase from the same period in 2025.Chinese companies dominated the city’s IPO market in the first quarter, accounting for 99 per cent of the total proceeds. Technology firms also fuelled the strong performance, capturing nearly half of the total IPOs and secondary listings.However, industry experts cautioned that Hong Kong could lose its lead to the United States over the full year, citing a pipeline of mega IPOs expected there, including OpenAI and Elon Musk’s SpaceX.Chan highlighted a growing shift among global investors to diversify asset allocation amid rising geopolitical risks and rapid technological change, reducing reliance on single markets or asset classes.Paul Chan says Hong Kong’s IPO market has raised more than HK$140 billion, with turnover exceeding HK$280 billion since March. Photo: Jelly Tse“Hong Kong is actively developing into an international gold trading market to further enrich our financial market, in response to the latest market demand,” Chan said.He underscored the city’s strengths in stability and security, its concentration of capital and talent, the free flow of data, and a widely trusted legal system, all of which he said would become increasingly attractive to global investors.In January, Hong Kong signed an accord with the Shanghai Gold Exchange to establish a cross-border clearing platform. The move aims to strengthen the city’s position as a global gold trading hub and capitalise on the current market boom for the precious metal.The central gold-clearing system is expected to begin trial runs this year, while the city’s storage capacity is forecast to exceed 2,000 tonnes within three years.Further ReadingChan added that the range of exchange-traded funds (ETFs) would continue to expand to cover precious metals, technology and semiconductor firms, as well as digital assets, providing efficient and transparent investment channels.He also said that Hong Kong’s average daily turnover for exchange-traded products (ETPs), including ETFs, reached HK$38.6 billion in February, ranking behind only the US and mainland China.“Many cutting-edge companies and projects in green energy innovation, advanced manufacturing and digital finance are emerging in Asia,” Chan said.“As a leading international financial centre in the region, Hong Kong will continue to leverage its role as a ‘superconnector’, facilitating the matching of capital with regional opportunities.”He added that Hong Kong was considering including Bursa Malaysia, the country’s stock exchange, in its list of recognised exchanges, aiming to tap into Islamic finance and attract new capital and IPOs.Chan earlier this month said that Hong Kong would rise to at least second place in the global ranking of international financial centres within the next 10 to 15 years.According to the latest Global Financial Centres Index released last month, Hong Kong ranked third globally, just one point behind London and two points short of top-ranked New York, while edging Singapore by a single point.Economist Simon Lee Siu-po expressed optimism about the goal and the city’s IPO performance this year, but cautioned authorities against blindly pursuing higher rankings.He emphasised the importance of maintaining a stringent vetting process for listed companies, pointing to the Index, which ranked Hong Kong eighth in the “government and regulatory” category.Lee added that the Hong Kong stock market lagged behind its major competitors. The benchmark Hang Seng Index, which closed at 25,978.07 on Friday, remained far below its historical peak above 33,000, while stock markets in Japan and the US had reached record highs this year.He also urged the city to diversify its financial markets, particularly by expanding the bond market, to attract institutional investors.His remarks followed the announcement last week by Hong Kong Exchanges and Clearing and Bursa Malaysia of a collaboration covering dual listings, ETFs and Islamic finance.