Mainland China-listed firms are increasingly turning to Hong Kong for new share offerings, drawn by favorable valuations, robust liquidity, and supportive policies. The recent move by Contemporary Amperex Technology (CATL), a Shenzhen-listed company and the world’s largest electric vehicle battery producer, to gauge investor interest for its estimated US$5 billion share float marks a significant development in this trend.
CATL’s potential share sale in Hong Kong is poised to be the largest of the year, following in the footsteps of Kuaishou Technology’s US$6.2 billion IPO in January 2021. The company is among the 30 A-share firms that have applied for H-share offerings in Hong Kong in 2025, already surpassing the total number of such applications from the previous year.
According to industry data, the surge in applications for H-share offerings represents a notable shift, as the average number of applications stood at five per year from 2016 to 2023. This year, a total of 46 A-share companies are reportedly planning to list in Hong Kong, indicating a growing interest among mainland firms in tapping into the city’s capital markets.
Wu Qing, the chairman of the China Securities Regulatory Commission (CSRC), emphasized the importance of simplifying the overseas listing process to bolster Hong Kong’s position as an international financial hub. The move to streamline filing procedures and related aspects for overseas listings is expected to enhance efficiency and quality, further supporting the A-to-H listing trend.
The regulatory initiatives to facilitate A-share companies’ listings in Hong Kong build on previous measures introduced by the CSRC in April 2024. Additionally, the Hong Kong exchange operator’s commitment to expediting share sales by mainland-traded Chinese companies underscores the region’s growing significance as a preferred destination for cross-border listings.
With 30 A-share firms already in the pipeline for H-share offerings in Hong Kong this year, the market dynamics indicate a shifting landscape in capital market activities. The convergence of attractive valuations, ample liquidity, and conducive policies is driving mainland companies to explore opportunities for share offerings in Hong Kong, leveraging the city’s financial infrastructure and investor base.
As the trend of mainland firms flocking to Hong Kong for share sales gains momentum, the city’s stock exchange is poised to witness a surge in new listings, with CATL’s potential US$5 billion share float setting the stage for a series of high-profile offerings. The evolving dynamics of cross-border listings reflect a broader strategic shift in capital market activities, underpinned by regulatory reforms and market-driven initiatives aimed at enhancing Hong Kong’s appeal as a global financial center.
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