HKEX revenue jumps 33% YoY to record HK$14.1B in H1 2025 amid IPO rebound

HONG KONG: Hong Kong Exchanges and Clearing (HKEX), the city’s stock exchange operator, reported a 33% year-on-year (YoY) jump in revenue to a record HK$14.1 billion (S$2.32 billion) for the first half of 2025 (H1 2025) on Wednesday (Aug 20), fuelled by a rebound in its initial public offering (IPO) market and stronger trading activity, as reported by Reuters.

While Hong Kong has faced a prolonged IPO slump since 2020 following Beijing’s regulatory crackdown, analysts expect a rebound this year as more Chinese firms turn to the city amid rising geopolitical tensions.

Profit attributable to shareholders climbed 39% to HK$8.52 billion. At the same time average daily turnover in equity products surged 122% to HK$222.8 billion.

HKEX said the performance was driven by renewed interest in China-related assets, supported by optimism about the economy, policy measures, and advances in artificial intelligence.

HKEX chairman Carlson Tong noted that despite tariffs, geopolitical risks, and interest rate fluctuations, he remains cautiously optimistic about the outlook for the second half of the year. He added that this year’s wave of IPOs was “reinforcing Hong Kong as a listing venue for issuers seeking to raise funds from both Mainland and international investors.”

Several major Chinese company listings, including battery maker CATL, pharmaceutical company Jiangsu Hengrui, and soy sauce producer Foshan Haitian, helped fuel the momentum.

The exchange recorded 44 new listings in H1 2025, raising HK$109.4 billion, up 716% from a year earlier. HKEX’s database shows it is also processing more than 200 listing applications.

In early August, the bourse eased some IPO rules for China-listed firms seeking to raise overseas funds in Hong Kong, including lowering the minimum public float requirement. 

Bloomberg reported that Shein, the Singapore-based e-commerce giant, has considered moving its headquarters back to China to strengthen its Hong Kong listing plans after earlier efforts in New York and London stalled. HKEX shares have gained nearly 50 per cent so far this year. /TISG

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