China IPO Reform: How New Rules on HK Listings, Nasdaq & Strategic Sectors Are Reshaping Capital Markets

The recent Deloitte China report shows strong resurgence in both mainland A-share and Hong Kong IPO markets in 2025, reversing tepid performance from the prior year. The mainland market’s IPO activity saw a modest increase in number of listings (14%) but a nearly 94% jump in proceeds; however, its absolute scale remains significantly smaller than Hong Kong’s, which raised almost double or more in absolute value [1].

Hong Kong’s performance was extraordinary: HKD 286.3 billion raised via 114 IPOs in 2025 versus HKD 87.5 billion from 70 IPOs in 2024 [1]. The dominance of large IPOs—eight deals raising ≥HKD 10 billion each—and nearly half the proceeds derived from A+H listings suggest that institutional investors and large ecosystem participants are steering the market [1][2]. Such concentration bolsters Hong Kong’s status globally as a top IPO venue, a shift also observed by KPMG and EY, both ranking HKEX first in funds raised in 2025 [2][5].

Regulatory reforms are a major factor. In the A-share market, the introduction of the “New Nine Measures” and “1+N” policies have improved IPO issuing frameworks and encouraged sectors aligned with national industrial strategy [1]. In Hong Kong, reforms to listing rules (e.g., Technology Enterprises Channel, specialized regimes for tech / biotech), procedures (IPO pricing, settlement shortening), and price discovery mechanisms have enhanced market confidence and efficiency [1][2][5]. These policy changes have set the stage for continued growth in 2026.

On the cross-border front, one of the biggest shifts to watch is U.S. regulatory tightening, particularly Nasdaq’s proposed minimum IPO size requirements ($25 million offering for China-based companies) and stricter delisting rules [1][3]. These will likely diminish incentive for smaller issuers to go public in the U.S., pushing them toward listing in Hong Kong or at home. A+H listings and dual listings may become more appealing amid these frictions.

Strategic Implications: Global investors, IPO advisors, and issuers should position for Hong Kong to remain the leading IPO gateway, especially for Chinese and China-anchored firms. Emphasis will likely shift toward larger, higher-quality companies, especially in tech, biotech, new energy. Capacity in due diligence, cross-border structuring and regulatory compliance will become even more valuable. Open questions include whether increased liquidity in 2026 sustains for small-cap listings in Hong Kong or the mainland, how U.S. rules will be implemented and their effect, and whether regulatory arbitrage (dual primary/secondary listings) intensifies.