Mainland China’s stock exchanges mount charm offensive amid Hong Kong IPO boom

Mainland China's stock exchanges are actively pushing for domestic listings over Hong Kong, following the latter's dominance in fundraising activities. Two sources familiar with the situation reveal that exchanges are actively lobbying companies and regulators to prioritize listings on mainland exchanges. They emphasize higher valuations, a more straightforward timetable, and additional policy support for sectors aligning with Beijing's priorities.

An intermediary involved in Hong Kong IPOs confirms that such lobbying efforts have become more frequent, as exchanges vie for market rankings. Consequently, some clients are reconsidering their plans to offer H shares and opting for A-share offerings in Beijing, Shanghai, or Shenzhen instead. Hong Kong's IPO fundraising, driven largely by mainland companies, reached HK$340 billion in the first eight months of the year, surpassing last year's total and outpacing expectations despite numerous firms still in line.

China's market regulator introduced measures to encourage Hong Kong listings in April 2024, including simplified filing procedures, support for qualified industry leaders, and quicker review times. High-profile companies like CATL and Zhongji Innolight have successfully listed in Hong Kong, contributing to the city's bourse operator reclaiming the global IPO crown last year. The mainland A-share market raised 177 billion yuan in the first half of 2026, surpassing the previous year's figure.

The Shanghai and Shenzhen exchanges also made notable strides, with 26 and 23 new listings, respectively, raising 100.56 billion yuan and 58.61 billion yuan. Among the mainland exchanges, the Beijing Stock Exchange emerged as the top performer, recording 53 new listings and raising 18 billion yuan. The regulator, Li Chao, stated that the A-share market will be the top choice for IPOs, with a shorter average review cycle for Shanghai and Shenzhen listings at around six months, and refinancing approvals for top-tier companies taking less than a month.