China’s ‘largest corporations’ have been gaining attention as they have been successfully making their marks in overseas capital markets. Capital markets such as Hong Kong and Singapore are making every effort to attract Chinese corporations' initial public offerings (IPOs), and the Chinese government has also simplified related procedures to support overseas listings, expecting derivative effects from the global growth of its domestic corporations.
China’s largest battery manufacturer, Contemporary Amperex Technology Co., Limited (CATL), successfully listed on the Hong Kong Stock Exchange on the 20th. CATL initially planned to raise $4 billion (approximately 5.5 trillion won) through this IPO but increased the amount to $4.6 billion (approximately 6.3 trillion won) due to high demand. This marks the largest IPO globally this year. On its first day of trading, CATL’s stock price surged 16% compared to the offering price.
Prior to this, Chinese beverage franchises successfully listed on the Hong Kong and U.S. stock markets this year. According to China Global Times and Caixin, Mixue succeeded in raising HK$3.45 billion (approximately 606.1 billion won) in Hong Kong last March and saw its stock soar 43% immediately after trading began. BaWangChaJi listed on the U.S. Nasdaq in April, raising $411 million (approximately 565.5 billion won). BaWangChaJi closed its first trading day up 16%, with intraday gains exceeding 40%.
In addition, Jiangsu Hengrui Medicine, a Chinese pharmaceutical company, listed on the Hong Kong Stock Exchange on the 23rd, and China’s second-largest automobile manufacturer, Chery Automobile, is also pushing for a listing in Hong Kong. According to the South China Morning Post (SCMP) and Reuters, between 20 to 30 Chinese corporations are expected to list this year in Hong Kong, while at least five Chinese and Hong Kong corporations are planning to list in Singapore by next year at the latest.
The primary reason Chinese corporations choose overseas capital markets is that fundraising is relatively easier. The scale of funds and the openness of the market are larger than in the domestic stock market, providing a diverse range of investors, allowing corporations to respond flexibly to various funding needs. Additionally, the fundraising process is evaluated to be quicker and less restrictive compared to mainland China. The structure that highly values promising technology corporations is favorable for those with high growth potential. Corporations operating globally or preparing to enter the market can also expect a boost in visibility.
According to China Securities Journal, efforts to attract Chinese IPOs to overseas markets are also active. Hong Kong, where China’s ‘largest corporations’ are consecutively listing, has established a dedicated listing channel for technology corporations, simplifying the listing process. The Singapore Exchange recently stated, “We will strengthen cooperation with Chinese corporations to ensure they can fully utilize global capital market platforms.”
The Chinese government has also begun encouraging the overseas listings of its corporations by improving related procedures. Li Ming, Vice Chairman of the China Securities Regulatory Commission, stated at the ’2025 Global Investor Conference' on the 19th, “We will enhance the efficiency of the registration review for overseas listings.” On the 23rd, the People’s Bank of China and the State Administration of Foreign Exchange announced that they would streamline the management of foreign currency funds for listed corporations and improve the convenience of fundraising.
The government’s encouragement of overseas listings for domestic corporations is beneficial not only at the corporate level but also at the national level. The Securities Journal stated, “Overseas listings could be a catalyst for China’s strategic industries to break free from domestic constraints and expand into the global market,” adding that, “If Chinese corporations achieve results by expanding their global business in overseas capital markets, it can ultimately become a new growth engine for China.”