While the prevalence of A+H listings could help Hong Kong reclaim the top fund-raising spot this year, Chinese mainland enterprises would be wise to consider whether to list their shares in the city, financial analysts and initial public offering (IPO) sponsors said.

The Hong Kong Stock Exchange welcomed another “A+H” listing with the debut of Foshan Haitian Flavoring & Food Company on Thursday.

Haitian, a public company listed on the Shanghai Stock Exchange and one of the first mainland-listed companies included in the MSCI China Index, successfully raised HK$10.1 billion ($1.29 billion) by issuing a total of 279 million H shares.

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The mainland’s largest condiment manufacturer is not the first to adopt the “A+H” fund-raising model.

In May, Shenzhen-listed battery giant Contemporary Amperex Technology (CATL), a key Tesla supplier, raised over HK$41 billion which was the world's largest equity offering to date in 2025. Shanghai-listed Jiangsu Hengrui Pharmaceuticals followed with a HK$9.89 billion offering.

Cheng Xue, the chairwoman of the mainland’s largest condiment manufacturer, said listing on the Hong Kong Stock Exchange is a major milestone for the company.

“After listing, the company will continue to give returns back to investors through business development and contribute to the prosperity of the Hong Kong market. We will take root in the Chinese mainland market, adhere to long-term planning, go global, and accelerate the realization of the goal of serving customers globally,” Cheng said at the listing ceremony on Thursday.

Haitian’s share price closed at HK$36.5 per share on Thursday, up 0.55 percent on the offering price of HK36.3 per share, with a turnover of about HK$2.88 billion for the whole day.

The public share offer of Haitian was oversubscribed more than 917 times. With an allocation rate of just 5 percent for one lot, investors have to apply for 80 lots to ensure that they can obtain one lot. Each lot contains 100 shares.

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“The Hong Kong IPO market is expected to gain further momentum, driven by A-share companies seeking listings in Hong Kong. Most of the companies in the current A+H dual listing pipeline are leaders in niche industries such as new consumption and hard technology enterprises, presenting a scarcity value in both Hong Kong and global capital markets,” EY Hong Kong Capital Market Services spokesperson Jacky Lai said.

China International Capital Corporation, Goldman Sachs and Morgan Stanley are the joint sponsors of Haitian’s IPO.

Wang Shuguang, a member of the CICC Management Committee, said mainland enterprises must be well prepared before submitting an H-share IPO application.

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“I personally think that not all A-share listed companies are suitable for issuing H-shares in Hong Kong because the volatility of the Hong Kong capital market will be very large, and Hong Kong investors are very selective in choosing investment targets. Mainland companies must grasp market trends when mulling the A+H fund-raising model,” Wang said at a sideline interview during the Haitian IPO.

The CICC committee member argued that the purpose of listing in the Hong Kong capital market is to connect mainland listed companies with the world's smart money. “The strategic importance is that the listing can bring more resources for these companies to conduct global business expansion.”