Chinese Mainland Firms Power Almost 40% Jump in Hong Kong IPOs in 2025

(Yicai) Dec. 11 -- Chinese mainland firms are accelerating plans to list in Hong Kong as they seek new financing channels and a springboard for international expansion, with 104 initial public offerings on the city’s stock market so far this year, nearly 40 percent more than in 2024, according to bourse data.The rise in listings comes as companies increasingly view Hong Kong as a gateway to global markets. The number of firms awaiting approval has also reached its highest level in almost 10 years, underscoring strong demand.Novosense Microelectronics, an integrated circuit design firm that debuted on the Hong Kong Stock Exchange on Dec. 8, said one of the main goals of its listing is to use Hong Kong as a platform to strengthen its overseas business. As China’s first analog chipmaker to achieve a dual listing on the mainland and in Hong Kong, the company aims for overseas revenue to reach about 20 percent by 2029, complementing its domestic market, according to Chairman and Chief Executive Wang Shengyang.Novosense plans to turn its Hong Kong office into its overseas operations and sales headquarters, serving global clients and building a foreign supply chain. China’s exports of mechanical and electrical products rose 9 percent in the first 11 months from a year earlier, accounting for 61 percent of total exports, with integrated circuits up 26 percent and automobiles up 18 percent, according to customs data.Wang noted that “going global is indeed a sensitive topic this year,” adding that the recent incident regarding Chinese semiconductor manufacturer Nexperia highlighted rising uncertainties in overseas markets. Disagreements between Nexperia’s Dutch headquarters and its Chinese arm have led to a suspension of wafer deliveries to the firm’s Guangdong facility, Tech in Asia reported today.Geopolitical tensions remain the most immediate risk, Wang said, though opportunities persist as intense competition in China’s automotive and energy sectors pushes many firms to expand abroad.At Novosense, more than 60 percent of its clients in Europe have already reached mass production, with key customers expanding from single-product procurement to broader multi-product supply. In Japan and South Korea, eight clients in power battery technology and auto parts have also entered mass-production stages.To mitigate risks, Wang said Chinese companies must first strengthen internal compliance systems, including automated customer screening and clear definitions of prohibited counterparties to avoid direct or indirect dealings. He added that overseas expansion requires approaches aligned with global market expectations, and Novosense addresses talent needs through a mix of expatriate assignments and local recruitment.Editor: Emmi Laine