This article only represents the author's own views.

China’s IPO boat is increasingly sailing to Hong Kong, which is rapidly becoming the preferred destination over New York and even traditional A-share markets in Shanghai and Shenzhen. That’s the biggest takeaway from a look at IPO activity by Chinese companies in 2024, which saw a strong uptick in the second half of the year.

The trend looks set to continue into 2025, driven by two main factors. On the one hand, China is sharply reducing approvals for new A-share listings to support the domestic markets. That’s driving many companies that previously would have listed in Shanghai or Shenzhen to look to Hong Kong instead. Simultaneously, companies are increasingly avoiding New York over concerns about future China-U.S. tensions.