Hong Kong must diversify its pool of listed companies and investors to regain its status as the world’s leading initial public offering venue, according to a new report by the Financial Services and Development Council (FSDC).
The think tank argues that relying on a narrow base of issuers is no longer sufficient, urging the city to actively attract new-economy companies from across the Association of Southeast Asian Nations (ASEAN), the Middle East, and Europe.
The recommendation comes as Hong Kong’s stock exchange works to solidify its recent resurgence in global capital markets.
In the first half of the year, IPO and secondary listing proceeds surged 84.3% year-on-year to US$26.4 billion, signaling a strong recovery in deal flow.
However, the FSDC warns that sustaining this momentum requires a structural shift in the composition of listings, moving beyond traditional sectors and geographic dependencies.
The push for diversification aligns with broader efforts to position Hong Kong as a specialized financial hub.