For China’s hi-tech IPOs, it’s Hong Kong vs the mainland – but how much does it matter?

Competition between mainland China and Hong Kong for technology IPOs presents firms with a choice between the two markets, according to a Beijing official. "There is naturally a degree of competition," Lu Peng, general manager of Beijing-based Zhongguancun International, said, explaining that tech firms choose their primary listing venue based on their goals.

Firms focused on international expansion typically prefer Hong Kong, while those seeking higher valuation multiples stay onshore, where domestic investors reward growth stocks with larger price-to-earnings ratios. Beijing has recently streamlined cross-border approval procedures for Hong Kong listings by mainland firms, facilitating a wave of such listings, even as domestic exchanges remain a deeper pool for capital.

Beijing-based firms accounted for 484 A-share listings by August 31, or 8.72 percent of all A-share companies nationwide, with their combined market value reaching 23.74 trillion yuan (US$3.54 trillion), representing 20.39 percent of the entire A-share market. However, Lu argued that the distinction between the two markets fades over time, as many technology companies eventually pursue listings in both venues to become "great global companies."

This dual-track dynamic aligns with China's broader economic goals, supporting its "dual circulation" strategy that balances domestic market growth with international trade and capital integration. Lu is leading a Beijing delegation of five AI companies to Hong Kong FinTech Week x StartmeupHK in November, likely including Yuequan Bionics, a humanoid-robotics developer expected to be the front-runner for a Hong Kong IPO, and Zhongguancun Kejin, a large-language-model firm.

Hong Kong's appeal to these companies lies in its role as a gateway, connector, and hub, providing direct access to international capital and distribution channels, and offering a compliant environment to validate products before entering Western markets.