Accounting firm Ernst & Young (EY) said it expects Hong Kong’s IPO market to remain strong in 2026, with equity issuance to reach around HK$320 billion ($41.1 billion), while growth will be more measured, reflecting deeper structural development.

In a report released on Thursday, EY stated that the city’s IPO fundraising in 2025 was at its second-highest level in five years, surpassing the HK$200 billion mark for the first time in four years. This ranks first globally in terms of funds raised this year, overtaking the New York Stock Exchange in the United States and the Bombay Stock Exchange in India.

The report highlighted that Hong Kong’s IPO have raised HK$280 billion in 2025, a 218 percent year-on-year increase. Large-scale IPOs played a significant role in driving the surge. Chinese companies, including Contemporary Amperex Technology Co Ltd, Zijin Gold International Co Ltd, Huadian New Energy, Sany Heavy Industry Co Ltd, and Seres Group, are among the 10 biggest IPOs globally.

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More than 20 A-share companies debuted on the Hong Kong Stock Exchange, collectively raising over HK$170 billion, showing the continued popularity of the “A+H” and “A-to-H” dual-listing models.

The market is transitioning from a growth model focused primarily on volume expansion to one that emphasizes high-quality companies in key sectors such as technological innovation, artificial intelligence, and biopharmaceuticals, said Jacky Lai, EY Hong Kong capital market services spokesperson.

Lai said he expects the fundraising scale of large enterprises next year to be similar to this year’s, though the number of IPOs may be more stable.

Contact the writer at akirawang@chinadaily.com