A view of Hong Kong File Photo: VCG

A total of 66 new stocks had been listed in Hong Kong by mid-to-late December, raising over HK$83 billion ($10.69 billion). The total financing value is expected to rank fourth globally, signaling a recovery in the Hong Kong Special Administrative Region Initial Public Offering (IPO) market, according to a report by yicai.com.

As of December 19, total fundraising in Hong Kong's IPO market for 2024 reached HK$83 billion, an 80 percent increase compared with the first three quarters of 2023, according to the report.

Hong Kong stocks have shown signs of recovery from challenges such as weak liquidity, low valuations and financing difficulties. By the end of November, total market capitalization had risen nearly 10 percent from the end of 2023. The average daily turnover in the first 11 months reached HK$130.9 billion, up 24.7 percent year-on-year, according to the report.

According to KPMG, Hong Kong ranked fourth globally in IPO fundraising in 2024, returning to the top five. 

Irene Chu, partner and head of New Economy & Life Sciences, Hong Kong, KPMG China, said on its official website that Chinese enterprises aiming to go public could increasingly turn to Hong Kong. The city maintains robust connectivity with the A-share market through the Stock Connect program and offers valuable access to global investors as an international financial hub.

According to a report released by Deloitte, after three quarters of slowdown, Hong Kong's IPO market regained momentum in September, driven by the US Fed's rate cuts and Chinese mainland's economic stimulus measures, pushing annual fundraising significantly above 2023 levels.

Facing increased external challenges, many mainland companies are opting for Hong Kong as their listing destination, Xi Junyang, a professor at the Shanghai University of Finance and Economics, told the Global Times on Wednesday.

Hong Kong serves as a vital bridge between the mainland's capital market and global investors, Tan Xiaofen, a professor at the School of Economics and Management at Beihang University, told the Global Times on Wednesday.

Tan also noted that Chinese mainland has introduced supportive policies, with ongoing relaxation of the Stock Connect Scheme. This has streamlined listing qualifications, capital exchange, and financing channels for mainland enterprises via Hong Kong's capital market, Tan said.

According to the Chief Executive's 2024 Policy Address released in October, an array of measures were outlined to attract new capital and products to the stock market, including the introduction of more yuan-denominated products and refining the regulatory regime to boost efficiency. It also emphasizes the better utilization of the currency swap agreement to enhance offshore yuan liquidity.