These important liquidity events, which can be a barometer of a financial centre's vigour, are watched by wealth managers. On that basis, private bankers and others in Hong Kong will be uncorking the champagne.

Hong Kong is poised to be in the top spot in global IPO market rankings by the end of 2025, fuelled by an “unprecedented wave” of IPO applications, KPMG has predicted.

IPOs are liquidity events and, as such, are closely watched by wealth managers and bankers as sources of new clients. By contrast to Hong Kong, the IPO market in the once-vibrant UK has been sluggish and dropped from the top 20 global exchanges for capital raised from IPOs through the third quarter (Bloomberg, 6 October).

KPMG said that at the end of the third quarter, the Hong Kong market was “setting new benchmarks,” with an historic number of almost 300 active IPO applications in the pipeline as of 30 September. The figures came in KPMG’s latest Chinese Mainland and Hong Kong IPO review.

For the first three quarters of 2025, global markets raised $111.6 billion across 930 deals, representing a 32 per cent and 3 per cent increase in total funds raised and number of deals, respectively, compared with the same period in 2024. 

The US stock exchanges ranked second and third after Hong Kong, with a 19 per cent increase in combined fundraising year-on-year, while the National Stock Exchange of India and Shanghai Stock Exchange took fourth and fifth places, respectively.

“The uncertainties surrounding US trade policy are gradually diminishing, and companies are once again eyeing public markets to finance their next phase of development,” Paul Lau, partner, head of capital markets and professional practice, KPMG China, said. “IPOs in emerging industries like AI and crypto continue to capture headlines, reflecting investors’ growing interest in forward-looking investments.”

The vigour of Hong Kong’s share flotations chime with what WealthBriefingAsia heard when your correspondent met with bankers, consultants and wealth managers in the city in mid-September. KPMG’s predictions about Hong Kong also fit with claims that the Asian city will at one point surpass Switzerland as the world’s largest cross-border financial centre by assets.

One of the ingredients in Hong Kong’s status is the Wealth Connect system connecting investment and capital markets of the city, mainland China and Macao. The Connect system was first introduced in September 2021, and is seen as a way to tighten links across the Greater Bay Area.

A-share momentum
In other details, KPMG said the A-share [mainland China) market showed “positive momentum” in IPO activities during the third quarter. In aggregate, it raised RMB113.2 billion ($18.5 billion) across 95 deals for the first nine months of 2025, which is a 12 per cent rise in deal volume and a 30 per cent increase in funds raised compared with the same period last year. 

Recently, the Shanghai STAR Market has undergone deep reform and implemented the “1+6” policies in July. These reforms include establishing a science and technology innovation growth tier to serve pre-profitable tech firms with technological breakthroughs; piloting a senior professional institutional investor system to introduce more long-term capital to support tech firms; and implementing a trial IPO pre-review stage to improve overall review efficiency. These measures aim to enable pre-profitable tech firms to access capital to foster their long-term growth, KPMG said. 

“The increased participation of institutional investor in IPOs, as well as the rise in foreign institutional investors’ interest in Chinese Mainland’s technological innovations, are expected to facilitate a broader and more diverse range of high-quality foreign capital into Chinese Mainland’s capital markets,” Irene Chu, partner, head of new economy and life sciences, Hong Kong SAR, KPMG China, said.

Hong Kong
The Hong Kong IPO market maintained its momentum in Q3, with funds raised reaching HK$182.9 billion ($29.52 billion) across 67 listings in the first nine months of the year, surging by a 229 per cent rise in funds raised and 49 per cent higher in deal volume compared with the same period last year. 

The Hong Kong Stock Exchange recently concluded its consultation on IPO price discovery and open market requirements and immediately launched a further consultation on ongoing public float requirements.