Hong Kong’s capital markets are experiencing a robust rebound, with three prominent mainland Chinese and Hong Kong companies announcing plans to raise funds in the city on Wednesday. The surge follows a period of market revitalisation, driven by increased investor confidence and favourable economic conditions.
Among the fundraising initiatives, China Petrochemical Corporation (Sinopec) announced that its offshore subsidiary, Deep Development 2025, has received approval to issue HK$7.75 billion (US$990 million) worth of exchangeable bonds in Hong Kong. The seven-year bonds are backed by shares of another Sinopec offshore subsidiary and are intended to refinance the group’s medium and long-term offshore debt.
Meanwhile, Shanghai Microport Medbot, a medical equipment manufacturer, is preparing to raise approximately HK$389.62 million through the issuance of 25.1 million new shares at HK$15.50 each. After accounting for fees and expenses, the expected net proceeds of around HK$382.33 million will be allocated to research and development and the replenishment of working capital.
Additionally, CSI Properties, a Hong Kong-based property investment firm, plans to allow its subsidiary, ESL, to issue new notes with a three-year maturity. The exact offering amount will be announced later, and the proceeds will be used to optimise CSI’s debt structure and balance sheet.
The renewed fundraising activities highlight the ongoing recovery of Hong Kong’s capital markets, which began to rebound in late 2024 following three years of declines. As of April 2025, the total market capitalisation of stocks traded in the city had reached US$38.8 trillion, representing a 21% increase from US$32.1 trillion in the previous year.
Trading activity has also surged, with the average daily turnover in April 2025 amounting to US$274.7 billion, marking a 145% increase from the US$112.3 billion recorded a year earlier. This resurgence has created an opportune environment for fundraising, supported by falling interest rates and growing investor interest.
This week, Contemporary Amperex Technology, the world’s leading electric vehicle battery maker, launched a dual primary listing in Hong Kong, targeting a potential raise of up to HK$41 billion. If successful, this would be the largest share sale in the city since Kuaishou Technology’s US$6.2 billion initial public offering (IPO) in January 2021.
Hong Kong’s capital market recovery has also propelled the city to the third spot globally for IPOs in the first quarter, with 15 companies raising HK$17.7 billion—nearly three times the amount raised during the same period last year, according to KPMG.
Kenny Ng Lai-yin, a strategist at Everbright Securities International, attributed the positive fundraising environment to the recovery of capital markets and lower interest rates. The three-month Hong Kong interbank offered rate, currently at its lowest since July 2022, has made debt issuance more attractive. Issuing debt in Hong Kong, according to Ng, provides companies with access to a diverse investor base while enhancing their brand presence on the global stage.
-South China Morning Post
