Hong Kong ECM raises $129.97b in Q1, led by BYD and Xiaomi

The rise was primarily driven by two major follow-on offerings in March.

Hong Kong’s equity capital markets (ECM) have experienced a record surge in the first quarter of 2025, raising a total of $129.97b (US$16.7b), marking an astonishing 13-fold increase in proceeds compared to the same period last year.

The rise was primarily driven by two major follow-on offerings in March — BYD’s $43.58b (US$5.6b) share sale and Xiaomi’s $42.8b (US$5.5b) offering.

These two deals alone accounted for a significant portion of the total ECM proceeds, showcasing Hong Kong's attractiveness as a venue for large capital raisings.

In terms of Initial Public Offerings (IPOs), Hong Kong’s stock exchanges, including both the Mainboard and GEM, raised $17.9b (US$2.3b) in IPO proceeds, a 281.9% increase from the previous year.

IPOs from Chinese companies dominated the market, capturing 87% of the total IPO proceeds, with $15.56b (US$2b) raised from these firms. Sectors such as Retail, Materials, and Consumer Products & Services contributed the most to the IPO proceeds, collectively accounting for 75% of the total.

In global rankings, the Hong Kong Stock Exchange Mainboard secured the 4th position in IPO proceeds, with an 8.8% market share, trailing behind top exchanges like Nasdaq and New York.

The follow-on offerings segment also saw a significant uptick in activity, reaching a four-year high with $108.9b (US$14b) raised in Q1 2025, a 22-times increase compared to the first quarter of last year.

The number of follow-on deals also grew by 9.6%, making it the busiest start to a year since 2021.

Goldman Sachs led the Hong Kong ECM underwriting rankings, capturing 24.2% of the market share with $31.1b (US$4b) in proceeds.