Overseas Listings Accelerate for Mainland-Listed Companies (AI Translation)
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文｜财新周刊 岳跃 王娟娟
By Caixin Weekly Yue Yue and Wang Juanjuan
2025年前两个月，已有31家企业（含全流通）获得中国证监会的境外上市备案通知书，超过2024年三季度（24家）和四季度（24家）的备案通过数量。尤其是赴美上市的企业，在2024年下半年仅放行8家，而2025年至今，两个多月就已有8家放行。
In the first two months of 2025, 31 companies—including those fully tradable—received overseas listing filing notices from the China Securities Regulatory Commission (CSRC), surpassing the number of filings approved in the third and fourth quarters of 2024, which stood at 24 each. Notably, the number of companies granted approval for listing in the U.S. was only eight in the second half of 2024. In contrast, in just over two months of 2025, eight companies have already been approved.
中国证监会主席吴清在2025年3月6日举行的十四届全国人大三次会议经济主题记者会上表示，要稳步扩大高水平制度型对外开放，进一步完善境外上市备案制度，稳步拓展跨境互联互通，更好地以开放促改革、促发展。
Wu Qing, Chairman of the China Securities Regulatory Commission, stated at the economic-themed press conference of the 14th National People's Congress on March 6, 2025, that there is a need to steadily expand high-level institutional opening-up to the outside world, further improve the filing system for overseas listings, and steadily enhance cross-border connectivity. This is aimed at better promoting reform and development through openness.
从2024年全年的境外上市数据看，共有97家境内企业完成境外上市；其中，61家在香港市场IPO，占比63%，36家在美国市场IPO，占比37%。同期，虽然A股市场IPO数量为100家，但募资总额为90.53亿美元，不及122.5亿美元的中企境外IPO募资总额。
Throughout 2024, a total of 97 domestic companies went public overseas, with 61 firms, or 63%, conducting IPOs on the Hong Kong market, and 36 firms, or 37%, on the U.S. market. In the same period, although there were 100 IPOs on the A-share market, their total fundraising amounted to $9.053 billion, falling short of the $12.25 billion raised by Chinese enterprises' overseas IPOs.
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- In early 2025, 31 companies received overseas listing approvals from the CSRC, surpassing filings from late 2024. Eight companies gained approval for U.S. listings in just over two months of 2025, matching the total from the latter half of 2024.
- Chinese companies increasingly favor Hong Kong and U.S. markets for IPOs, driven by A-share market's lengthier IPO timelines and tighter conditions—a trend reinforced by regulatory support and favorable policies.
- Despite increased scrutiny and the challenges of VIE structures in the U.S., Chinese tech and innovative firms are exploring Hong Kong listings, encouraged by eased rules and rising investor interest, particularly in Hong Kong's tech sector.
In the first two months of 2025, 31 Chinese companies received approvals from the China Securities Regulatory Commission (CSRC) for overseas listings, already surpassing the approval numbers from the previous half-year. Notably, eight businesses were allowed to list in the U.S. within this period, compared to the same number throughout the entire second half of 2024. Wu Qing, Chairman of the CSRC, emphasized the importance of enhancing cross-border capital connectivity to spur domestic economic reform and development through openness. [para. 1]
In 2024, 97 domestic Chinese firms went public overseas, with a majority opting for Hong Kong instead of the U.S. because of the prolonged waiting times for A-share listings in China. On average, it takes longer to list on the Shenzhen Stock Exchange's Main Board than on the Beijing Stock Exchange or for U.S. or Hong Kong listings. A shift in strategies for initial public offerings (IPOs) is evident due to regulatory landscapes and capital markets. While U.S. listings remain attractive, Chinese companies are more frequently turning to the Hong Kong market. [para. 3][para. 5]
Several Chinese firms, including listed companies on the A-share market, are pursuing secondary listings in Hong Kong to leverage its international fundraising platform. For instance, Contemporary Amperex Technology Co. plans to use funds raised in Hong Kong for global expansion. There’s a growing trend of A-share companies flooding to the Hong Kong Stock Exchange (HKEX) due to shorter and simpler approval processes. Since policy changes in 2024, Hong Kong has seen a surge in mainland companies choosing it for listings. The HKEX is also reforming its IPO pricing mechanism to align with market dynamics. [para. 8][para. 11]
The ongoing U.S.-China tensions have induced caution among Chinese companies considering U.S. listings, especially with the re-election of President Trump. U.S listings raise substantial policy risk and oversight, while Hong Kong is seeing an increase in IPO activity; Deloitte forecasts 80 new IPOs there in 2025. [para. 7][para. 13]
Smaller Chinese enterprises find U.S. exchanges challenging post increased regulatory scrutiny, further exacerbated by policies aimed at Chinese stocks. In 2024, many newly U.S.-listed Chinese companies raised less, and about a third of them were loss-making. This change has influenced Chinese firms to consider Hong Kong as a more favorable alternative. Initiatives like the "America First Investment Policy" amplify these shifts by advocating stringent evaluations of Chinese Variable Interest Entity (VIE) structures by U.S. regulatory bodies. [para. 14][para. 15]
Chinese tech companies are particularly focused on listing overseas, with Hong Kong becoming a preferred option due to adaptable listing rules allowing not-yet-profitable tech firms. By 2024, Hong Kong's IPO environment improved, prompting technology firms to revisit this route. Firms like Zhonghui Yuantong illustrate a burgeoning trend of tech companies shifting from A-share ambitions to Hong Kong, seeking favorable listing conditions and potential exit routes for early investors. [para. 22][para. 24]
Ultimately, while the CSRC promotes supportive measures for tech company financings, Hong Kong stocks have re-emerged as a choice for Chinese enterprises, given the more challenging U.S. market regulations and prolonged A-share IPO delays. The CSRC has fostered growth of technology by propelling newer frameworks dedicated to supporting innovative business models and unprofitable tech firms, indicating a balanced regional capital outlook. [para. 30][para. 37]
- Contemporary Amperex Technology Co., Ltd.
宁德时代 - Contemporary Amperex Technology Co., Ltd. (CATL) is one of the A-share companies that applied for H-share issuance to list in Hong Kong in 2025. According to its prospectus submitted on February 11, 2025, CATL plans to use the funds raised from the Hong Kong stock listing for overseas capacity expansion, international business development, and supplementing overseas operational funds, supporting its long-term internationalization strategy.
- Jiangsu Hengrui Medicine
恒瑞医药 - Jiangsu Hengrui Medicine (600276.SH) is among the 13 A-share companies applying for H-share listings in Hong Kong in 2025. This move aligns with a trend where A-share companies seek Hong Kong listings for international capital access, financing convenience, and strategic expansion. In the past few years, such listings were relatively rare, with only a few companies pursuing this path annually.
- Foshan Haitian Flavouring & Food
海天味业 - Foshan Haitian Flavouring & Food, previously valued at over 700 billion RMB, submitted a prospectus to the Hong Kong Stock Exchange on January 13, 2025. The funds raised from its Hong Kong IPO will be used to establish a global brand image, expand sales channels, and enhance overseas supply chain capabilities, aiming to increase its global influence.
- Dongpeng Beverage
东鹏饮料 - Dongpeng Beverage (605499.SH) is among the 13 A-share companies that applied for H-share listings in Hong Kong in 2025. The trend of A-share companies seeking secondary listings in Hong Kong highlights the preference for Hong Kong's international capital platform, facilitating easier financing and supporting their overseas expansion strategies.
- Unisplendour Corporation
紫光股份 - Unisplendour Corporation (000938.SZ) is mentioned as one of the A-share companies applying to issue H-shares and list in Hong Kong in 2025. This move follows a trend where A-share listed companies pursue secondary listings in Hong Kong, attracted by its international capital platform and the strategic need for easier financing.
- Meituan
美团 - Meituan, listed on the Hong Kong Stock Exchange (03690.HK), completed multiple additional share issuances within a year of its initial Hong Kong listing. The company exemplifies the trend of A-share listed companies pursuing secondary listings in Hong Kong for easier financing and strategic expansion, reflecting the benefits of simpler financing approval processes compared to the A-share market.
- Laoxiangji
老乡鸡 - Laoxiangji initially applied for an A-share listing in May 2022. However, after waiting for 15 months without progress, it withdrew its application and switched to seeking a listing on the Hong Kong Stock Exchange. Laoxiangji submitted its prospectus to the Hong Kong Exchange on January 3, 2025.
- Mao Geping
毛戈平 - Mao Geping, a domestic beauty brand, initially sought to become the "first domestic cosmetics stock" by applying for an A-share IPO in 2016. After facing numerous hurdles, including reapplications and withdrawals, the company pivoted to the Hong Kong market. It submitted a prospectus to the Hong Kong Stock Exchange on April 8, 2024, and successfully listed on December 10, 2024, under the code 01318.HK.
- MetaLight Technology
MetaLight - MetaLight Technology was the first VIE structure company to pass the Chinese Securities Regulatory Commission's (CSRC) filing since October 2024, receiving approval on January 7, 2025. It was also the only one among the 19 VIE companies applying in 2024 to receive such approval.
- Zhonghui Yuantong Biotechnology
中慧元通 - Zhonghui Yuantong Biotechnology, originally aiming for a Sci-Tech Innovation Board (STAR Market) listing, withdrew its application in August 2023 amid regulatory pauses on A-shares IPOs. The company decided to pursue a Hong Kong listing instead, submitting its application on January 23, 2025, with its main products being a quadrivalent influenza virus subunit vaccine and a freeze-dried human rabies vaccine. Despite losses, its revenue and gross profit saw significant growth.
- JD.com
京东 - The article mentions JD.com as an example of a new economy enterprise that listed in the U.S. while still unprofitable, highlighting its use of dual-class stock structures to ensure founder control. JD.com went public on the U.S. stock market in 2014, representing the trend during the "golden 2010 era" of Chinese technology companies opting for U.S. IPOs due to regulatory flexibility and valuation premiums.
- Alibaba
阿里巴巴 - The article mentions that Alibaba used AB stock structure to secure founder control when it listed in the U.S. market. Alibaba's experience is cited as part of a broader trend where Chinese tech companies prefer U.S. listings for their system inclusivity and valuation premium, especially before stricter regulations on foreign companies were introduced.
- Pinduoduo
拼多多 - In the article, Pinduoduo is mentioned as a company that previously benefited from the U.S. market's accommodating listing environment. Pinduoduo, known for its AB share structure, successfully ensured founder control when it went public. However, following regulatory changes, Chinese tech companies like Pinduoduo faced increased challenges in the U.S. market, with the article highlighting a shift towards Hong Kong for listings.
- Bilibili
哔哩哔哩 - Bilibili, known for its "Gen Z community" narrative, listed in the U.S. in 2018 despite not meeting profitability requirements, leveraging the U.S. market's regulatory flexibility. This reflects past trends where Chinese tech companies preferred U.S. listings due to low barriers and valuation benefits. However, shifting regulations and geopolitical considerations now affect the landscape for such companies.
- DiDi
滴滴 - In 2021, DiDi announced its delisting from the New York Stock Exchange just 155 days after its debut, intending to list in Hong Kong instead. This move followed increased cross-border data scrutiny and regulatory tightening. DiDi's delisting coincided with significant declines in shares of US-listed Chinese firms like Weibo, Pinduoduo, and iQiyi.
- Weibo
微博 - In the article, Weibo, along with other Chinese stocks like Pinduoduo and iQiyi, experienced a significant drop in value after Didi announced its delisting plans from the NYSE in December 2021. This event marked a challenging period for Chinese companies listed in the U.S. amid tightening regulations and geopolitical tensions.
- iQIYI
爱奇艺 - The article mentions that iQIYI, along with other Chinese concept stocks like Weibo and Pinduoduo, experienced a significant decline in stock value when Didi announced its delisting from the NYSE in December 2021, with a drop of over 20% in that week.
- April 8, 2024：
- Mao Geping submitted its prospectus to the Hong Kong Stock Exchange.
- April 19, 2024：
- CSRC announced measures to enhance cooperation with Hong Kong's capital market.
- October 18, 2024：
- Hong Kong SFC and HKEX issued a joint statement optimizing new listing application reviews.
- December 10, 2024：
- Mao Geping successfully went public on the Hong Kong Stock Exchange.
- January 3, 2025：
- Lao Xiang Ji submitted its prospectus to the Hong Kong Stock Exchange.
- January 13, 2025：
- Haitian Flavoring & Food Co. submitted a prospectus to the Hong Kong Stock Exchange.
- January 15, 2025：
- Hong Kong Securities and Futures Commission Chairman Wong Tin-yau spoke at the Hong Kong Capital Markets Forum.
- February 21, 2025：
- Donald Trump signed the 'America First Investment Policy' memorandum.
- March 3, 2025：
- CITIC Securities released a report claiming the A-share market IPO tightening has lasted for 18 months.
- March 6, 2025：
- Wu Qing, Chairman of the CSRC, spoke at the 14th National People's Congress.
- After the first two months of 2025：
- 31 companies received overseas listing filing notices from the CSRC.
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