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

Mainland China's stock exchanges have intensified efforts to convince companies to list on their exchanges instead of Hong Kong, following the latter's recent success in raising funds for IPOs. According to sources familiar with the situation, exchanges have been actively lobbying companies and regulators to prioritize domestic listings. They highlight the advantages of listing on the mainland, such as higher valuations, a more predictable timetable, and greater policy support for sectors aligned with Beijing's priorities.

Moreover, intermediary sources indicate that the lobbying efforts have become more frequent as the exchanges vie for market rankings, positioning themselves as business competitors. Consequently, some clients are now reconsidering their plans for Hong Kong share offerings (H shares) and opting instead for A-share listings in Beijing, Shanghai, or Shenzhen.

This competitive landscape is unfolding amid Hong Kong's IPO fundraising, which totaled HK$340 billion (US$43 billion) in the first eight months of the year, surpassing last year's total even before many firms in the queue have completed their listings. Edward Au Chun-hing, a managing partner at Deloitte China, noted that the market had previously heavily relied on Hong Kong as the sole offshore platform.

In response to this trend, China's market regulator introduced a series of measures in April 2024 to encourage Hong Kong listings, including streamlined filing steps, support for qualified industry leaders, and reduced review times. Notably, CATL and Zhongji Innolight successfully listed on Hong Kong's stock exchange in recent years, contributing to Hong Kong's bourse reclaiming the global IPO leadership last year.

Meanwhile, mainland China's A-share market has also seen robust activity. In the first eight months of 2026, mainland A-share IPOs raised 177 billion yuan (US$26 billion), surpassing last year's total but growing at a slower pace. The Shanghai and Shenzhen stock exchanges led the mainland exchanges in terms of new listings, with 26 and 23 new listings, respectively, raising 100.56 billion yuan and 58.61 billion yuan.

Among the three major exchanges, the Beijing Stock Exchange demonstrated the most significant growth in the number of deals, with 53 new listings raising 18 billion yuan.

Regulators have also shown support for mainland exchanges, with Li Chao, vice-chairman of the China Securities Regulatory Commission, stating that the regulator would implement more inclusive policies for IPOs and mergers, positioning the A-share market as the top choice for listing. Li emphasized that the average review cycle for A-share IPOs in Shanghai and Shenzhen had been reduced to about six months, with refinancing approvals for top-tier companies taking less than a month.