The bulls are stampeding in Hong Kong, with initial public offerings in the city in the first half leading the world in money raised. Many analysts are predicting the trend will extend to the rest of the year.

"Hong Kong has regained the crown jewel in IPOs," said Molly Bao, eastern region partner of the Capital Market Services Group at Deloitte China.

A total of 42 IPOs on the main board of the Hong Kong Stock Exchange raised HK$106.7 billion (US$13.5 billion) in the first half, according to the London Stock Exchange Group. The Nasdaq in New York ranked second with new listings of US$8.85 billion, while the New York Stock Exchange came in third with US$7.52 billion.

By contrast, fundraising from IPOs on the London exchange slumped to a three-decade low, and some companies in continental Europe, like medical technology firm Brainlab, drug company Stada and car-parts seller Autodoc, have delayed share sales amid trade and geopolitical uncertainties.

Closer to home, Chinese mainland stock exchanges didn't share in Hong Kong's IPO glory. The three main markets hosted about 50 new companies with listings totaling 33.6 billion yuan (US$4.7 billion). Still, prospects look brighter going forward. The Beijing, Shanghai and Shenzhen exchanges accepted 150 IPO applications in June alone, and the STAR Market has resumed listings for startup companies with great potential but no profits yet.

Hong Kong's half-year achievement surpassed total funds raised in new share sales for the whole of 2024, with PricewaterhouseCoopers forecasting up to 100 IPOs in Hong Kong this year and total fundraising of more than US$25.5 billion.

Deloitte's Bao attributed Hong Kong's milestone to the rise of mainland technology companies hungry for capital to expand, Hong Kong measures streamlining applications and Beijing's support for second listings.

Among the 200 active IPO applicants in the pipeline to be listed in Hong Kong are some 40 are already trading on mainland stock exchanges.

"Measures encouraging leading Chinese companies to list in Hong Kong together with improved market valuations, liquidity and capital absorption capacity have all added momentum to Hong Kong's IPO market," Bao said.

Centerpiece of first-half activity was the Hong Kong listing of China's world-leading battery maker Contemporary Amperex Technology (CATL), which was already listed in Shenzhen. The IPO raised a record US$4.6 billion. It was not only the largest sale but also one of the fastest, executed in just 128 days with investors from 15 countries involved. The shares surged 25 percent by the end of June.

Robin Zeng, chairman and chief executive of CATL, said Hong Kong's status as an international financial center has enabled the company to expand its capacity, supplier network and talent pool, while also finding international partners to achieve its goal of moving beyond just a battery maker to become a "zero-carbon technology company."

Worthy of mention, US underwriters of the IPO, including Bank of America, JPMorgan, Goldman Sachs and Morgan Stanley, participated even amid US-China trade tensions.

Fang Xinghai, former vice chairman of China Securities Regulatory Commission and current vice president of the China Society for Finance and Banking, said intermarket links, like the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, are strengthening capital market synchronization.

The market-connect mechanisms have driven a flow of funds from mainland investors into the Hong Kong market. Those flows hit a record in the second quarter.

Besides CATL, 92 percent of IPOs on the Hong Kong Stock Exchange in the first half came from mainland companies, which raised UK$97.6 billion, a sixfold increase from a year earlier, according to Deloitte.

Technology and biomed companies have been the stars in the wave of Hong Kong IPOs. For instance, Jiangsu Province-based drugmaker Hengrui Pharmaceuticals' US$1.3 billion IPO marked a five-year-high for a Hong Kong pharmaceutical debut.

Another notable first share sale was Unisound AI Technology, which provides conversational products used across various industry sectors. The company raised US$26 million in its June debut. Other AI-related firms, including SenseTime, humanoid robot-maker UBTech and automotive chip vendor Horizon Robotics, have also chosen to list in Hong Kong.

Why is Hong Kong so especially attractive for high-tech firms?

For one thing, the Hong Kong Stock Exchange in May officially launched its Technology Enterprise Channel (TECH), which provides specialized guidelines for technology and biotechnology companies. It also simplified requirements for firms with complex share structures.

The emergence of China's AI star DeepSeek and its powerful, low-cost chatbot model has underpinned investor enthusiasm for breakthrough technology companies since January, helping the Hang Seng Index to a 20 percent surge this year, one of Asia's best-performing equity markets.

Chinese technology companies already listed in Hong Kong have basked in the market's glow. Xiaomi shares in the first half soared 68 percent on sales of electric vehicles and the introduction of a new SUV premium model to rival Tesla. Automotive chip vendor Horizon Robotics surged 75 percent.

Hong Kong has made great strides in re-establishing its credentials as a global capital market after several years of lassitude. It recently passed legislation setting up a mechanism for stablecoins – cryptocurrencies pegged to real-world assets like the US dollar – to be traded by licensed firms in the city.

US-China trade tensions have bolstered Hong Kong as the go-to market for Chinese companies seeking to delist from US exchanges, amid noises from the Trump administration that the US may crack down on China listings. Hong Kong Financial Secretary Paul Chan said the city offers an ideal platform for companies that want to sidestep geopolitical and trade risks in favor of raising money for growth and development.

Consumer goods companies have also benefited from the Hong Kong market aura.

Among the top five Hong Kong IPOs in the first half, two came from the food industry: condiment maker Haitian Flavoring & Food and bubble-tea chain Mixue Group. Other teahouse chains have also been IPO success stories, including Good Me, Hu Shang A Yi and Green Tea.

"It's an ideal destination for restaurants and food companies," said Sindy Wong, director of Tourism and Hospitality at InvestHK. "They can not only use the city to raise capital but also as a springboard to overseas expansion."

Deloitte's Bao said Hong Kong may well capture the global IPO crown for the whole of 2025.

"As Hong Kong's listing regime continues to evolve and attract a new wave of IPO candidates, the city's capital market gains depth and dynamism," she said. "At the same time, new policy initiatives such as TECH are set to facilitate listings by more biotech and specialist tech companies, further fuelling growth in fundraising volumes."

Financial Secretary Chan is equally optimistic for the coming month, saying, "Investors are bullish on the Hong Kong bourse going into the second half."

But Hong Kong can't rest on its laurels. Some Chinese mainland companies still see brighter prospects overseas. Despite veiled threats from the Trump administration, 36 China companies sold shares in the US in the first half, up 57 percent in volume and 28 percent in fundraising from a year earlier.