The Hong Kong Stock Exchange has proved resilient. In 2022, IPO volumes hit their lowest point in a decade, tumbling 68.4% year-on-year to about US$13.3bn as the Covid-19 pandemic and macroeconomic headwinds weighed on activity.

The turnaround since then has been significant. HKEX regained its footing and became the world's top IPO fundraising venue in 2025, with proceeds reaching US$37.4bn.

That momentum continued in 2026. The exchange recorded its second-highest first-half IPO volumes ever, with 87 listings raising a combined US$26.8bn-equivalent. The issuer mix was broad, with artificial intelligence-focused companies and a dual listing from Indonesian mining company Merdeka laying the groundwork for a strong year.

The second half has brought more momentum. Zhongji InnoLight, a Chinese maker of optical components for AI data centers, debuted on the HKEX in late July after a jumbo US$6.8bn IPO, the city’s largest share sale since 2019. Fast fashion retailer Shein, meanwhile, dropped attempts to list in the US and London and opted for Hong Kong instead, debuting on the bourse on September 1 following a US$1.7bn IPO.

Both stocks have struggled since listing. But that appears less about HKEX and more company-specific: concerns around the AI sector in Zhongji’s case and an uncertain outlook on Shein’s growth prospects.

Importantly, the pipeline is strong – a clear reflection of HKEX's concerted efforts over several years to strengthen Hong Kong's position as an international financial center and a leading exchange for equity capital markets.

Two factors are boosting its appeal: its dual-listing proposition and its latest regulatory overhaul allowing dual-class share structures with enhanced voting rights for some shareholders and permitting confidential IPO filings for all companies.

Why dual listings matter

A company listed only in the US may be largely inaccessible to Asian institutional investors that prefer, or are restricted to, trading on regional exchanges. Adding a Hong Kong listing, whether primary or secondary, gives companies access to Asian and Mainland Chinese capital. The reverse is also true for Hong Kong-listed companies seeking global institutional investors.

Dual listings also help companies manage geopolitical and regulatory risk, a growing priority as cross-border tensions rise and markets become more fragmented.

For HKEX, dual listings help attract major overseas-listed companies, including non-Chinese firms, broadening market liquidity and reinforcing Hong Kong's position as a premier listing hub. Last year, seven international issuers headed to Hong Kong for IPOs, including companies from Indonesia, Singapore, Thailand, Kazakhstan, the UAE and the US, across sectors such as mining, biotechnology, consumer goods and healthcare. The dual-listing option is a clear draw.

Voting rights

The HKEX strengthened its position further in July. It said it would allow dual-class share structures, which give some shareholders enhanced voting rights, and open confidential IPO filings to all companies rather than only eligible firms.

The changes are part of HKEX's broader effort to remain globally competitive and ward off growing competition from US exchanges, onshore China markets and London, which has recently loosened audit rules to attract Chinese listings. They bring Hong Kong's regime closer to US exchanges, which have long allowed dual-class share structures and confidential filings.

By easing its rules, HKEX is showing it is listening to market needs, tracking global trends and taking a forward-looking approach to competitiveness.

The changes are likely to attract more companies to Hong Kong, drawn by its flexibility and access to global and local capital. For dealmakers, the city's IPO market remains one to watch.