Hong Kong & Macao Legal Perspective | Introduction to Hong Kong's Legal System (Part 5) – Advantages of Mainland Enterprises Listing in Hong Kong and a Comprehensive Guide to the Entire Process

Since 2025, Hong Kong’s capital market has once again emerged as the central battleground for cross-border financing activities by mainland Chinese enterprises. According to data released by the Hong Kong Stock Exchange, new stock financing in the Hong Kong market reached US$14.1 billion in the first half of the year—representing a year-on-year surge of 695%, which propelled Hong Kong past both the New York and Shanghai stock exchanges to claim the top spot globally in IPO activity. As of the end of September, the number of companies waiting in line for an IPO in Hong Kong had climbed to 298, including 78 A-share-listed firms—and among them, 12 industry-leading enterprises with market valuations exceeding 100 billion yuan, such as Luxshare Precision and Muyuan Shares. This trend underscores a growing "A-share+H-share" dual-platform strategy, as more mainland companies seek to establish a global capital presence while enhancing their international brand influence under China’s "dual circulation" initiative. Behind this momentum lies not only the sustained institutional benefits unleashed by Hong Kong’s capital market following its 2018 listing system reforms—such as allowing unprofitable biotech firms and companies with different share structures to go public—but also the sector’s launch of the "special technology" board in 2023. These developments align closely with the strategic needs of mainland enterprises aiming to expand their global footprint and strengthen their international brand visibility amid the "dual circulation" framework. From a practical standpoint, systematically analyzing and outlining the core advantages, comprehensive process frameworks, and latest operational insights for mainland companies planning to list in Hong Kong by 2025 can provide clear, actionable guidance for prospective issuers. At the same time, it equips these companies with the tools to navigate compliance risks effectively and streamline their listing processes, making this effort highly relevant and valuable in practice.

(Photography: Li Zhefan)

Mainland Chinese companies choosing to list in Hong Kong is fundamentally rooted in the city's unique institutional framework, vibrant capital ecosystem, and supportive policy environment—factors that create a differentiated yet complementary relationship with China's A-share market. Looking at market practices since 2025, their core advantages can be distilled into five key dimensions, each mutually reinforcing the others and collectively forming the compelling value proposition for listing in Hong Kong.

Mainland enterprises choosing to go public in Hong Kong do so primarily because of the unique institutional features, vibrant capital ecosystem, and synergistic policy environment of the Hong Kong capital market—elements that create a differentiated complementarity with the mainland’s A-share market. From the perspective of market practices in 2025, these core advantages can be integrated across five key dimensions, each mutually reinforcing the others, collectively shaping the compelling value proposition for listing in Hong Kong.

As an international financial hub, Hong Kong attracts long-term capital from around the globe, including sovereign funds, hedge funds, pension funds, and more. This abundant supply of capital has directly fueled the growing popularity of new share subscriptions—by 2025, special-purpose technology companies listing in Hong Kong are expected to raise an average of US$1.53 billion, 47% higher than their counterparts listed on China's A-share market. Additionally, the Hong Kong Stock Exchange introduced the "Science & Technology Innovation Board Dedicated Channel" review mechanism at the end of 2024, reducing the listing review period for specialized tech firms to just 4 months—representing a 50% faster turnaround compared to the traditional approval process—while also enabling companies to proceed with their listings through this streamlined pathway. Confidential Submission "Submit application documents via this method to effectively help businesses mitigate the impact of early market volatility on valuation."

As an international financial hub, Hong Kong has attracted long-term capital—including sovereign funds, hedge funds, and pension funds—from around the globe. This abundant supply of capital directly fuels the growing popularity of new stock subscriptions. In 2025, the average fundraising amount for special technology companies listed in Hong Kong reached $1.53 billion, a remarkable 47% higher than that of comparable A-share companies. Additionally, the Hong Kong Stock Exchange introduced the "Science and Technology Enterprise Special Line" review mechanism at the end of 2024, reducing the listing review cycle for these companies to just four months—50% faster than traditional review processes. At the same time, this innovative approach allows companies to submit application documents via a "confidential submission" method, effectively enabling them to sidestep the impact of market volatility on their valuations during the early stages.

The Hong Kong market has significantly higher flexibility in terms of profitability requirements and equity structure inclusivity for companies compared to A-shares. On one hand, unprofitable biotech firms can go public based on the value of their core pipeline—such companies accounted for 22% of Hong Kong's IPOs in the first half of 2025. On the other hand, the market also supports red-chip structures, VIE Structure Direct listings by companies have eliminated structural hurdles that previously limited mainland China's tech firms from raising capital overseas. For instance, ByteDance’s Volcengine division successfully listed in Hong Kong in March 2025 through the VIE structure, securing a fundraising round of up to $2.1 billion.

The Hong Kong market has significantly higher profit requirements and greater equity structure inclusiveness for companies compared to A-shares. On one hand, unprofitable biotechnology firms can go public based on the value of their core pipeline, accounting for 22% of the total IPO volume in Hong Kong stocks during the first half of 2025. On the other hand, Hong Kong supports the direct listing of red-chip and VIE-structured companies, effectively addressing structural barriers that have historically hindered overseas financing for mainland China’s tech enterprises. For instance, ByteDance’s Volcanic Engine division successfully listed in Hong Kong in March 2025 via the VIE framework, raising $2.1 billion.

The benefits of policy coordination have further reduced the institutional costs associated with listing in Hong Kong. In recent years, regulators on the mainland and in Hong Kong have increasingly aligned their review standards and data recognition processes. For instance, China's CSRC has streamlined the "approval process for overseas listings," cutting the turnaround time for issuing the "big green light" (the approval letter for overseas listings) from four months to just two. Meanwhile, the Hong Kong Stock Exchange has begun mutually recognizing certain financial data—such as audited annual reports—with both the Shanghai and Shenzhen stock exchanges, helping companies cut down on the expenses tied to repeatedly preparing and reviewing financial documents.

The dividend of policy synergy has further lowered the institutional costs associated with listing in Hong Kong. In recent years, regulatory agencies on the Chinese mainland and in Hong Kong have strengthened their collaboration on audit standards and data mutual recognition. The China Securities Regulatory Commission has streamlined the "overseas listing approval" process, reducing the approval timeline for the "main road" (the overseas listing approval letter) from 4 months to just 2 months. Additionally, the Hong Kong Stock Exchange has established mutual recognition of certain financial data—such as audited annual reports—with both the Shanghai Stock Exchange and the Shenzhen Stock Exchange, thereby cutting down on the expenses related to duplicating and reviewing financial documents for companies.

From a market performance perspective, the average overseas revenue share of companies listed on both "A+H" platforms reached 32%, 19 percentage points higher than that of companies listed solely on the A-share market. A prime example is CATL, which leveraged its Hong Kong-listed H-share structure to attract international investors. Saudi Sovereign Wealth Fund As a strategic investor, the company gains access to capital and resources that support the construction of overseas factories. Meanwhile, the Hong Kong Stock Exchange’s mandatory ESG (Environmental, Social, and Governance) disclosure requirements—starting in 2025, all listed companies will be required to disclose Scope 1-2 carbon emissions data, with certain industries also needing to provide additional Scope 3 disclosures—are compelling businesses to establish governance systems that meet international standards. As a result, these companies enjoy a valuation premium 23% higher than their non-ESG-compliant counterparts, further enhancing their ability to secure long-term financing.

From a market performance perspective, the average overseas revenue of companies listed on both "A+H" dual platforms accounts for 32%, which is 19 percentage points higher than that of companies listed solely on A-shares. Notable examples include CATL, which attracted Saudi sovereign funds as strategic investors through its Hong Kong stock listing, securing capital and resource support for building overseas factories. Meanwhile, the Hong Kong Stock Exchange has introduced mandatory ESG (Environmental, Social, and Governance) disclosure requirements—starting in 2025, all listed companies will be required to disclose Scope 1-2 carbon emission data, with certain industries also needing to report additional Scope 3 emissions—thus compelling companies to establish governance frameworks that align with international standards. As a result, these firms enjoy a valuation premium 23% higher than their non-ESG-compliant counterparts, further bolstering their long-term financing capabilities.

This advantage provides Hong Kong-listed companies with continuous opportunities for capital management. The Stock Connect programs now cover 90% of Hong Kong-listed stocks, and by 2025, the average daily trading volume of southbound funds is expected to reach HKD 42 billion, accounting for 28% of the total turnover in the Hong Kong stock market. High liquidity has boosted the average turnover rate in Hong Kong stocks to 1.2%, nearing the level seen on China's ChiNext board, thereby creating favorable conditions for companies looking to execute further capital-raising activities such as additional offerings, rights issues, and convertible bond launches.

This advantage provides Hong Kong-listed companies with continuous room for capital operations. The Shanghai-Shenzhen-Hong Kong Stock Connect mechanism now covers 90% of Hong Kong stock targets. By 2025, the average daily turnover of southbound funds is expected to reach HKD 42 billion, accounting for 28% of the total turnover in Hong Kong stocks. Such high liquidity will boost the average turnover rate of Hong Kong stocks to 1.2%, nearing the level seen in the A-share Growth Enterprise Market—providing favorable conditions for companies to carry out subsequent capital activities, such as issuing additional shares, rights issues, and convertible bonds.

(Photography: Li Zhefan)

For mainland Chinese companies seeking to list in Hong Kong—taking the most common H-share model as an example—going public is a comprehensive, systematic process that spans three key stages: preliminary preparation, application review and approval, and final issuance and listing. Each stage is intricately linked, making it crucial to pay close attention to the Hong Kong Stock Exchange's ongoing refinements in process details, especially as we look ahead to 2025.

The listing of mainland Chinese enterprises in Hong Kong (using the most common H-share model as an example) is a systematic process that involves three key stages: preliminary preparation, application review, and issuance and listing. Each stage is closely interconnected, and the Hong Kong Stock Exchange’s ongoing optimization of these process details in 2025 deserves particular attention.

Typically lasting 3 to 6 months, this process forms the foundation for a successful market launch, with key tasks including decision-making, assembling intermediary institutions, restructuring, and ensuring compliance with regulatory standards.

Typically taking 3 to 6 months, it serves as the foundation for a successful listing, with core tasks including decision-making, establishing intermediary organizations, structural adjustments, and ensuring compliance with relevant regulations.

During the decision-making and team-building phase, companies must first finalize their listing plans—such as the use of funds raised, the scale of issuance, and the choice of exchange segment—through a board resolution. Following this, they assemble a "dream team" of intermediaries, with core members including underwriters (who must be licensed by the Hong Kong Exchange; in the first three quarters of 2025, CICC International, CITIC Securities (Hong Kong), and Huatai Financial Holdings (Hong Kong) led the pack with 24, 18, and 13 deals respectively, with top-tier firms boasting an approval rate 27% higher than the industry average). Other key players include licensed Hong Kong-based lawyers, responsible for ensuring compliance with local legal requirements—including drafting company charters and reviewing the compliance of listing documents—and mainland China-based lawyers, who handle matters such as domestic asset ownership verification and foreign investment access compliance. Additionally, accounting firms are brought in to adjust financial statements according to Hong Kong Financial Reporting Standards. Notably, 80% of companies are required to provide supplementary disclosures, particularly regarding the capitalization of R&D expenses and the proper classification of government subsidies. Meanwhile, these intermediary institutions are tasked with conducting thorough due diligence, focusing especially on identifying potential business compliance risks (e.g., whether the company operates in sectors listed on the Foreign Investment Negative List), legal risks (such as ensuring the proper procedures for related-party transactions), and financial risks (including assessing the consistency of revenue recognition policies).

In the decision-making and team-building process, companies must first determine their listing plan through a board resolution—covering aspects such as fundraising objectives, issuance size, and selection of listing sectors—and then assemble an "intermediary team." The core members typically include sponsors (who must be licensed institutions approved by the Hong Kong Stock Exchange). In the first three quarters of 2025, CICC International, CITIC Securities (Hong Kong), and Huatai Financial Holding (Hong Kong) ranked among the top three, with 24, 18, and 13 sponsors, respectively. Notably, these leading institutions achieved an approval rate 27% higher than the industry average. Additionally, the team would comprise Hong Kong-licensed lawyers, responsible for ensuring compliance with local legal requirements—including drafting corporate statutes and reviewing listing documents for regulatory adherence—and mainland lawyers, who handle domestic asset-rights confirmation and foreign investment access compliance. An accounting firm will also play a critical role, adjusting financial statements to align with Hong Kong Financial Reporting Standards. Importantly, 80% of enterprises are required to provide supplementary disclosures, detailing specifics like the capitalization of research-and-development expenses and the classification of government subsidies. Meanwhile, intermediary agencies are tasked with conducting thorough due diligence, focusing on identifying potential business compliance risks (such as whether the company operates in industries restricted under the negative list for foreign investment access), legal risks (including adherence to proper procedures for related-party transactions), and financial risks (like ensuring consistency in revenue-recognition policies).

The architecture adjustment and compliance phase should be advanced based on the company’s specific circumstances. If the company has a purely domestic-invested structure and plans to list via the H-share model, it will need to establish an offshore listing entity—typically by setting up a holding company in either the Cayman Islands or Bermuda—which usually takes about 2–3 months. On the other hand, if a VIE (Variable Interest Entity) structure is involved, the company must first ensure the stability and compliance of the framework, making sure it meets mainland China’s regulatory requirements. Additionally, the company needs to apply to the China Securities Regulatory Commission (CSRC) for an "Approval Letter for Overseas Listing." In 2025, the average approval period for this process is 68 working days. Key documents required for submission include the preliminary draft of the prospectus, the internal control attestation report, and the board resolution approving the listing, among others.

The process of structural adjustment and standardization should be advanced according to the enterprise's specific circumstances. If the company has a purely domestic structure and plans to list via the H-share model, it will need to establish overseas listing entities (typically by setting up holding companies in the Cayman Islands or Bermuda), a process that usually takes about 2–3 months. Alternatively, if the company operates under a VIE structure, it must first confirm the stability and compliance of this framework to ensure adherence to mainland China’s regulatory requirements. Additionally, companies are required to obtain an "Overseas Listing Approval Letter" from the China Securities Regulatory Commission. On average, the approval cycle for this process in 2025 is 68 working days, and the key documents that must be submitted include the preliminary draft of the prospectus, the internal control verification report, and board resolution documents related to the listing.

This stage is the core phase of preparing for a Hong Kong listing, typically taking 3 to 6 months and revolving primarily around the Hong Kong Stock Exchange’s rigorous review process. After completing all preliminary preparations, companies must submit their application documents—led by their sponsor—to the Listing Division of the HKEX. Key documents include the prospectus (which must cover sections such as business overview, financial data, risk factors, and management’s discussion and analysis), the company’s articles of association, commitment letters from directors and senior executives, and audited financial statements. Once submitted, the documents enter the HKEX’s review process. Initially, the Listing Division conducts a preliminary assessment, focusing on the completeness and accuracy of the information disclosed in the prospectus. Typically, within 20–30 working days after submission, the HKEX will issue the first round of inquiry letters. Companies, in collaboration with their underwriting team, are required to respond within a specified timeframe—usually 15 working days—providing detailed evidence to address each query, such as supporting documentation for business data or compliance certificates. If the HKEX still has unresolved questions following the first round of responses, it may issue a second or even third round of inquiries, continuing until the review is finalized and the company advances to the hearing preparation phase. Twenty-five business days before the hearing, companies must submit a scheduling request to the HKEX, pay the initial listing fee (a minimum of HKD 1.5 million for the Main Board), and deliver the third draft of the prospectus. Additionally, within 20 to 10 business days prior to the hearing, companies are expected to provide updated, audited financial statements along with any other relevant executive commitments. Finally, four business days before the hearing, the company submits the final version of its application documents, marking the completion of the recommendation process by the Listing Division. The hearing itself is conducted by the HKEX Listing Committee, composed of independent non-executive directors and seasoned market professionals, who thoroughly evaluate the company’s eligibility for listing. Key considerations during this stage include the sustainability of the business model, the compliance of related-party transactions, and the reasonableness of the company’s valuation. In 2025, the approval rate for Hong Kong IPO hearings was approximately 82%, with most rejections stemming from insufficient disclosure or potential compliance risks associated with the business model.

This stage is the core process of going public in Hong Kong, typically taking 3 to 6 months and primarily revolving around the review process conducted by the Hong Kong Stock Exchange. After completing the preliminary preparations, the company must be led by its sponsor to submit application documents to the Listing Department of the Hong Kong Stock Exchange. These documents include the prospectus (which should cover business chapters, financial data, risk factors, management discussions and analysis, among other details), the company’s articles of association, commitment letters from directors and executives, as well as audited financial statements. Once submitted, the documents enter the Hong Kong Stock Exchange’s review process. Initially, the Listing Department conducts a preliminary review, focusing on the completeness and accuracy of the information disclosed in the prospectus. Usually, the first round of inquiry letters is issued within 20 to 30 working days after submission. The company, along with its intermediary agencies, must respond within the prescribed timeframe (typically 15 working days), providing detailed evidence for each inquiry question—such as supporting materials for business data or compliance certification documents. If the Listing Department still has questions following the first round of inquiries, a second or even third round of follow-up queries may be issued. This continues until the review is approved, at which point the company enters the preparation phase for the hearing. Twenty-five business days before the hearing, the company must submit a scheduling request, pay the initial listing fee (with a minimum of HKD 1.5 million for the main board), and deliver the third draft of the prospectus to the Hong Kong Stock Exchange. Additionally, between 20 and 10 business days prior to the hearing, the company needs to provide updated audited accounts, a director’s commitment letter, and other relevant documents. Four business days before the hearing, the final version of the application documents must be submitted, marking the completion of the recommendation process by the Listing Department. The hearing itself is conducted by the Hong Kong Stock Exchange’s Listing Committee, which comprises independent non-executive directors and market experts. During the hearing, the committee thoroughly examines the company’s eligibility for listing, paying close attention to critical issues such as business sustainability, adherence to related-party transaction regulations, and the reasonableness of the company’s valuation. In 2025, the pass rate for Hong Kong IPO hearings was approximately 82%. Cases that fail typically stem from insufficient disclosure of key information or compliance risks associated with the company’s business model.

Typically lasting 1 to 2 months, this phase is a critical step in bringing the listing process to fruition. After the hearing is approved, companies move into the roadshow and pricing stage. Management teams, accompanied by their underwriters, travel to major global financial hubs such as Hong Kong, Singapore, and London to pitch to institutional investors. During these presentations, they showcase the company’s business model, financial performance, and growth strategies, while simultaneously gathering investor interest through the book-building process to determine the final issue price. For instance, in 2025, companies listed on the Hong Kong stock market saw an average oversubscription rate of 35 times, with specialized technology firms even achieving much higher multiples—such as one AI-powered computing firm, whose institutional orders surged to an impressive 128 times. Once pricing is finalized, the next step is the public offering, where shares are made available to retail investors, typically accounting for 10% to 50% of the total issuance. The public sale period usually spans 3 to 5 trading days, during which retail investors can subscribe online through brokerage firms. Following the public offering, the company proceeds with share allocation and announces the successful allotment results. Next, the company completes share registration and settles all listing-related fees—such as underwriting fees, legal costs, and auditor charges—which generally amount to 5% to 8% of the total funds raised. Finally, the company officially lists its shares on either the Main Board or the GEM (Growth Enterprise Market) of the Hong Kong Stock Exchange. Looking at market performance in 2025, IPOs on the Hong Kong stock exchange enjoyed an average first-day gain of 12%, with specialized tech and biotech sectors posting even stronger gains, averaging 18%. This robust initial return not only delivered attractive early rewards to investors but also laid a solid foundation for companies’ future capital-raising activities.

It typically takes 1–2 months and represents a critical step in launching the listing process. Once the hearing is approved, the company moves into the roadshow and pricing phase. During this stage, the management team accompanies the sponsor to major global financial hubs like Hong Kong, Singapore, and London to conduct institutional promotions. Here, they introduce the company’s business model, financial performance, and growth strategies to potential investors. At the same time, investor interest is gauged through bookbuilding and filing processes, which ultimately determine the final issuance price. In 2025, companies listed in Hong Kong have seen an average oversubscription multiple of 35 times, with specialized tech firms—such as an AI computing power company that attracted an institutional subscription multiple of 128 times—experiencing even higher demand. After pricing is finalized, the company enters the public offering phase, issuing shares to retail investors, who typically account for 10% to 50% of the total issuance volume. The public offering period usually lasts 3–5 trading days, during which retail investors can subscribe online via securities firms. Once the public offering concludes, the shares are allocated, and winners are announced. Following this, the company completes share registration and pays all listing-related fees—such as underwriting, legal, and accounting expenses—which typically amount to 5%–8% of the total funds raised. Finally, the company is officially listed on either the Main Board of the Hong Kong Stock Exchange or the Growth Enterprise Market (GEM), where trading begins. From a market performance perspective in 2025, Hong Kong IPOs have historically averaged a first-day price increase of 12%. Notably, sectors like special technology and biotechnology have outperformed, with average first-day gains reaching as high as 18%. This strong initial return not only rewards investors but also sets the stage for future capital activities and growth opportunities for the companies involved.

In 2025, the Hong Kong Stock Exchange and mainland China’s regulatory bodies will further tighten compliance requirements, prompting companies to focus intensely on three key areas: First, ensuring compliance with foreign investment准入 rules. If a company operates in sectors listed under the "Special Management Measures for Foreign Investment Access (Negative List)"—such as telecommunications, media, finance, and others—it must obtain prior approval from relevant ministries like the Ministry of Commerce and the Ministry of Industry and Information Technology. This ensures that overseas listings remain aligned with mainland China’s industrial policies. Second, enhancing ESG information disclosure. Beyond the mandatory reporting of carbon emission data, the HKEX encourages companies to openly share their ESG strategies, goals, and performance metrics. Many institutional investors already use ESG performance as a critical factor in their investment decisions. To boost credibility, companies can proactively engage third-party organizations to conduct independent ESG verification and assurance. Finally, maintaining compliance with related-party transactions. The HKEX mandates full disclosure of all significant related-party transactions—typically those accounting for more than 5% of a company’s revenue—and requires approval by independent shareholders. Additionally, companies must annually report the upper limits for ongoing related-party deals. To avoid potential delays in the review process, businesses should streamline their related-party transaction procedures well in advance.

In the 2025 market environment, mainland Chinese companies seeking to list in Hong Kong need to integrate the latest regulatory developments, industry trends, and market preferences, make practical adjustments, and proactively manage potential risks to ensure a smooth listing process.

It’s crucial to align closely with Hong Kong’s hottest market segments and valuation dynamics: Looking at the distribution of IPOs expected in 2025, Specialized Technology (38%), Biotechnology (22%), and Consumption Upgrading (19%) stand out as the three key sectors—among which Specialized Technology Sector Covering cutting-edge fields such as new energy, AI, and semiconductors, these companies have attracted significant global capital attention. When valuing such firms, a composite valuation model combining "price-to-sales ratio + R&D investment proportion" can effectively highlight their technological barriers and growth potential. For biotech companies—especially those that are not yet profitable—their pipeline value should be assessed using a Discounted Cash Flow (DCF) model, taking into account key pipeline milestones like clinical progress, market size, and competitive positioning. At the same time, these companies must fully disclose clinical risks and R&D investment plans in their prospectuses. Meanwhile, consumer-upgrade businesses can leverage comparable companies' price-to-earnings (PE) and price-to-book (PB) ratios for valuation, emphasizing strengths such as brand equity, robust channel networks, and strong customer loyalty.

It is essential to closely monitor the prevailing trends and valuation dynamics of the Hong Kong market: Looking at the distribution of IPOs in 2025, the three key sectors are special technology (38%), biotechnology (22%), and consumer upgradation (19%). Among these, the special technology sector—encompassing cutting-edge fields like new energy, AI, and semiconductors—has attracted significant global capital attention. For companies in this sector, a composite valuation model combining the "market-to-sales ratio plus R&D investment ratio" is particularly effective, emphasizing their technological barriers and growth potential. Meanwhile, biotechnology firms—especially those that remain unprofitable—should conduct pipeline value assessments using the discounted cash flow (DCF) model, taking into account the clinical progress, market opportunities, and competitive landscape of their core pipelines. Additionally, they must transparently disclose any clinical risks and R&D investment plans in their prospectuses. Finally, consumer-upgradation enterprises can rely on valuation metrics such as the price-to-earnings ratio (PE) and price-to-book ratio (PB) of comparable companies, with a primary focus on brand strength, channel reach, and customer loyalty.

In 2025, the Hong Kong Stock Exchange and mainland China's regulatory bodies will further tighten compliance requirements, prompting companies to focus intensely on three key areas: First, ensuring compliance with foreign investment准入 rules. If a company operates in sectors listed under the "Special Management Measures for Foreign Investment Access (Negative List)"—such as telecommunications, media, finance, and others—it must obtain prior approval from relevant ministries like the Ministry of Commerce and the Ministry of Industry and Information Technology. This ensures that overseas listings remain aligned with mainland China’s industrial policies. Second, enhancing ESG information disclosure. Beyond the mandatory reporting of carbon emission data, the HKEX encourages companies to openly share their ESG strategies, goals, and performance metrics. Many institutional investors already use ESG performance as a critical factor in their investment decisions. To boost credibility, companies can proactively engage third-party organizations to conduct independent ESG verification and assurance. Finally, maintaining compliance with related-party transactions. The HKEX mandates full disclosure of all significant related-party transactions—typically those accounting for more than 5% of a company’s revenue—and requires approval by independent shareholders. Additionally, companies must annually report the upper limits for ongoing related-party deals. To avoid potential delays in the review process, businesses should streamline their related-party transaction procedures well in advance.

In 2025, the Hong Kong Stock Exchange and mainland regulatory agencies will further strengthen their compliance requirements. Enterprises need to focus on three key areas: First, ensuring compliance with foreign investment access rules. If a company operates in industries listed under the "Special Management Measures for Foreign Investment Access (Negative List)"—such as telecommunications, media, finance, and others—it must obtain prior approval documents from the Ministry of Commerce, the Ministry of Industry and Information Technology, and other relevant departments, guaranteeing that overseas listings align with mainland China’s industrial policies. Second, there’s the issue of ESG information disclosure. Beyond the mandatory reporting of carbon emission data, the Hong Kong Stock Exchange encourages companies to openly share their ESG strategies, goals, and performance metrics. Many institutional investors now use ESG performance as a critical factor in their investment decisions, so companies are advised to engage third-party organizations for independent ESG verification in advance, thereby enhancing the credibility of their disclosures. Finally, companies must comply with regulations governing related-party transactions. The Hong Kong Stock Exchange mandates full disclosure of all significant related-party transactions—typically those involving amounts exceeding 5% of revenue—which require approval by independent shareholders. Additionally, companies are required to annually report the annual cap on ongoing related-party dealings. To avoid potential delays in the review process due to unclear or opaque related-party activities, firms should establish standardized procedures for managing such transactions from the outset.

The choice of an intermediary agency directly impacts the efficiency and success rate of an IPO. In 2025, companies selecting their advisory teams should carefully consider three key factors: First, the agency’s industry expertise—prioritize firms with extensive experience in your specific sector. For instance, biotech companies should opt for underwriters and accounting firms that are well-versed in pharmaceutical industry regulations and valuation methodologies. Second, team stability—is it crucial to ensure that the core members of the agency’s project team remain consistent, as personnel changes could lead to project delays. Third, collaborative capabilities—the intermediary team must demonstrate strong coordination skills, particularly with the lead underwriter taking the lead in aligning lawyers, accountants, and other stakeholders to guarantee efficient and high-quality responses during regulatory reviews and document preparation. Additionally, companies should stay vigilant about their ongoing compliance obligations post-listing, such as regularly disclosing financial reports (e.g., interim and annual reports) and promptly reporting significant events (like major contracts, related-party transactions, or executive appointments). Failure to comply with these disclosure requirements could result in disciplinary actions from the Hong Kong Stock Exchange, potentially damaging the company’s market reputation and its ability to secure future financing.

The choice of intermediary agencies directly impacts the efficiency and success rate of an IPO. In 2025, companies should consider three key factors when selecting their advisory teams: First, the industry expertise of the intermediaries—prioritizing agencies with extensive experience in IPO projects within the company’s specific sector. For instance, biotech firms should partner with sponsors and accounting firms well-versed in pharmaceutical industry regulations and valuation principles. Second, team stability is crucial; companies must ensure that the core members of the agency’s project team remain consistent, thereby preventing delays caused by frequent personnel changes. Finally, collaborative capabilities are essential: the intermediary team needs to demonstrate strong coordination skills, particularly with the sponsor taking the lead in liaising effectively with lawyers, auditors, and other stakeholders. This ensures both the speed and quality of audit responses and document preparation. Additionally, companies must stay vigilant about their ongoing compliance obligations post-listing, such as regularly publishing financial reports (including semi-annual and annual statements) and promptly disclosing significant developments—like major contracts, related-party transactions, or executive appointments. Failure to adhere to these disclosure requirements could result in disciplinary actions from the Hong Kong Stock Exchange, potentially damaging the company’s market reputation and jeopardizing its ability to raise capital in the future.

In 2025, Hong Kong's capital market is emerging as a central hub for mainland Chinese companies seeking to achieve global capital expansion, thanks to its dual strengths: institutional innovation, policy synergy, and the convergence of global capital.

By 2025, Hong Kong's capital market is emerging as a key hub for mainland Chinese enterprises seeking to achieve a global capital strategy, thanks to its numerous advantages in institutional innovation, policy coordination, and the convergence of global capital flows.

From the perspective of strategic deconstruction, listing in Hong Kong not only provides companies with an efficient financing channel and a flexible listing framework but also helps enhance their global brand presence and strengthen their corporate governance systems. Looking at the entire process, the success rate of going public hinges on three key factors: thorough preparation in the early stages, compliance during the application and review process, and market alignment when launching and trading. On a practical level, aligning industry choices with current market trends, maintaining rigorous compliance management, and assembling a highly professional intermediary team are critical for companies to mitigate risks and achieve their listing objectives.

From the perspective of advantage deconstruction, going public in Hong Kong not only offers enterprises efficient financing channels and flexible listing systems but also helps them strengthen their international brand presence and refine their governance frameworks. From the standpoint of the entire process system, the thoroughness of preliminary preparations, adherence to application and review procedures, and the market adaptability during issuance and listing collectively determine the success rate of an enterprise’s listing endeavor. From a practical viewpoint, selecting an industry that aligns with market trends, maintaining rigorous compliance management, and assembling a professional intermediary team are critical factors that enable companies to mitigate risks and successfully achieve their listing objectives.

For mainland Chinese enterprises, listing in Hong Kong is no longer simply a financing exercise—it has become a strategic choice to integrate into the global capital markets and drive high-quality business growth. As the integration between mainland China’s and Hong Kong’s capital markets continues to deepen, listing on both the "A-share" and "H-share" platforms will increasingly become the standard for leading companies across various industries. Meanwhile, the Hong Kong market will persist in playing its unique role as a vital bridge, supporting the nation’s "dual-circulation" strategy and injecting fresh momentum into the globalization efforts of mainland Chinese firms.

For mainland enterprises, going public in Hong Kong is no longer just a simple financing activity—it has become a strategic choice aimed at integrating into the global capital market and driving the company’s high-quality development. As the integration of China’s mainland and Hong Kong capital markets continues to deepen, the "A+H" dual-platform listing model will increasingly become the standard for more industry-leading enterprises. Meanwhile, the Hong Kong market will persist in fulfilling its unique role as a bridge, supporting the country’s "dual circulation" strategy and injecting fresh momentum into the global growth of mainland Chinese businesses.