You’re seeing a renewed rush of Chinese technology firms heading to Hong Kong for listings. This follows a record-breaking first half of the year, with mainland investors buying HK$731.2 billion (US$93.1 billion) worth of Hong Kong stocks. Based on data from Hong Kong Exchanges and Clearing (HKEX) and Bloomberg as of July 1, this sharp uptick reflects growing optimism in the market.
Fuelled by attractive share valuations and positive sentiment around China’s tech sector, many A-share listed companies are now exploring dual listings in Hong Kong. These firms aim to expand internationally by tapping into the city’s global investor base and deep capital markets.
Companies like electric vehicle battery manufacturer Sunwoda Electric Vehicle Battery, biopharmaceutical firm Changchun High-Tech Industry Group, and smart-city solutions provider PCI Technology Group are actively preparing for Hong Kong listings. They hope to use this opportunity to grow overseas, access new funding channels, and raise their brand visibility beyond China.
Hong Kong becomes a safer route for global expansion
Kenny Ng Lai-yin, a strategist at Everbright Securities International, explained that improved investor sentiment and higher valuations have made Hong Kong a more appealing place to list. For Chinese companies that want to globalise while reducing exposure to US-China tensions, Hong Kong provides a less risky and more accessible option.
“Domestic firms aiming to attract international investors while steering clear of geopolitical risk now see Hong Kong as a better path forward,” said Ng.
More than 260 listing applications were submitted to HKEX in late June. According to consulting firm Deloitte, Hong Kong could raise HK$200 billion this year from around 80 new listings, strengthening the city’s standing as a global initial public offering (IPO) hub.
Key players making moves toward listing
Sunwoda Electric Vehicle Battery, a subsidiary of Shenzhen-listed Sunwoda Electronic, recently disclosed its listing plan to the Shenzhen Stock Exchange. The company, ranked among the top 10 global power battery suppliers, previously aimed to raise capital on the ChiNext start-up board in Shenzhen. However, delays in mainland regulatory approvals led it to pivot to Hong Kong instead.
Sunwoda aims to speed up its international strategy, build a global capital platform, and improve competitiveness. Its lithium-ion batteries power vehicles from leading carmakers such as Dongfeng Motor, Mercedes-Benz, and Xpeng. The company also operates factories in China, Europe, India, and Southeast Asia.
Meanwhile, Changchun High-Tech Industry Group, which has been listed in Shenzhen since 1996, is also moving forward with its Hong Kong listing plans. Its board has approved the process, and the company is already working with financial advisers. Changchun produces genetic drugs, vaccines, and modern Chinese medicine and has property interests. Although its 2024 net profit dropped 43% year-on-year to 2.58 billion yuan (US$361 million), it increased its R&D budget by over 11%, reaching 2.69 billion yuan.
PCI Technology Group, a Guangzhou-based firm, has also filed its intent to list. Known for its smart city and AI-based urban transport projects, PCI has worked on over 40 smart city initiatives and 100 intelligent transport projects across major cities like Guangzhou and Wuhan. It recently appointed KPMG Hong Kong as its auditor for the listing process.
While none of the companies have revealed specific fundraising amounts or listing dates yet, the move signals a clear trend: if you’re a mainland firm looking to grow globally, Hong Kong is once again the place to be.
