China's Listing Frenzy in Hong Kong and What It Means for Investors

Chinese companies are lining up in droves to list on the Hong Kong stock exchange, sparking a frenzy in a market that has been forsaken by investors and companies for many years.

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In May, the world's largest battery maker, Contemporary Amperex Technology, debuted on the Hong Kong Stock Exchange with a HK$41 billion (S$6.7 billion) listing that has been the biggest deal of its kind so far in 2025.

It is paving the way for the likes of luxury carmaker Seres, energy drink heavyweight Eastroc Beverage, robotics firm Estun Automation and other Chinese companies to list in Hong Kong in 2025.

There are at least 150 so-called AH listed companies—firms that have listings in both mainland China and in Hong Kong—the latest being soya sauce giant Foshan Haitian Flavouring & Food, which began trading in the city on June 19.

These companies, most of which are so far state-owned, are poised to increasingly shape Hong Kong's stock market as they keep listing their shares in the city. Here is what you need to know.

WHY DO CHINESE COMPANIES WANT TO LIST IN HONG KONG?

Listing in Hong Kong means Chinese companies can enjoy the best of both worlds: access to global funds and attraction to domestic investors.

Companies can list elsewhere, like in the US, to tap global funds, but the majority of China's 210 million retail traders are deterred by the inconvenient time difference and Beijing's capital controls.

Chinese residents are limited in how much money they can convert into foreign currency, with an exchange quota of US$50,000 (S$64,400) per year.

But mainland investors with more than 500,000 yuan (S$90,700) in their stock accounts can access companies on Hong Kong's Hang Seng Composite Index—and others—by using a two-way market access programme, known as the Stock Connect, without personal quota restrictions.

For many of these companies, getting proceeds in the form of the Hong Kong dollar—which is more fungible than the Chinese renminbi—can facilitate global expansion plans.