Hong Kong's initial public offering market is gathering momentum toward year-end, supported by a steady stream of listings and growing investor confidence in the city's capital market.

This renewed activity has been reflected in a pickup in new filings and accelerated application volumes across key growth sectors. More than 55 active listing applications were recorded in October, with over one-third submitted in the final two trading days, according to data compiled by MT Newswires.

Mainland participation also remained firm, with 17 A-share companies now pursuing Hong Kong listings. The latest batch includes CNGR Advanced Material (SHE:300919), Eastroc Beverage (SHA:605499), Nanhua Futures (SHA:603093), BIWIN Storage (SHA:688525), and BrightGene Bio-Medical (SHA:688166), alongside other semiconductor, consumer, and pharmaceutical firms.

The strong filing pace translated into a steady flow of market debuts. October was among the year's busiest months, featuring 11 debuts led by Sany Heavy Industry (HKG:6031, SHA:600031), CIG Shanghai (HKG:6166, SHA:603083), Fibocom Wireless (HKG:0638, SHE:300638), and Deepexi Technology (HKG:1384).

"With the U.S. Federal Reserve entering an interest-rate cut cycle, we expect more overseas capital to seek high-growth opportunities across Asia, including the Chinese mainland and Hong Kong markets," said Edward Au Chun-hing, Southern Region Managing Partner at Deloitte China.

At the same time, Hong Kong Exchanges and Clearing (HKEX) (HKG:0388) Chief Executive Bonnie Chan Yiting cautioned that fundraising momentum may face headwinds amid geopolitical and macroeconomic uncertainties, adding that it is too early for the city to claim victory.

Hong Kong's Chief Executive John Lee Ka-chiu said in his September policy address that regulators will undertake a comprehensive review of Hong Kong's listing framework to strengthen the city's global competitiveness.

As of Sept. 30, nearly 300 active filings were in the Hong Kong Exchange pipeline, a historic number excluding confidential submissions, according to a KPMG report.

"Improved valuation and liquidity are driving the Hong Kong IPO market, with A+H listings and Chapter 18C listings thriving amidst strong momentum," said Louis Lau, Partner and Head of Hong Kong Capital Markets Group at KPMG China.

"These trends are expected to continue, fueling IPO activity in the near future," he added. "With a record-breaking active pipeline, we are confident that Hong Kong will rise to the top of global stock exchanges once again in 2025."

The expanding pipeline signals a firmer tone in Hong Kong's capital market, even as investors remain alert to global risks. The strong momentum is reflected in a record number of active listing applicants, excluding confidential filings, according to data from the exchange.

Stabilizing valuations and stronger fund inflows are expected to keep new listings on a steady trajectory into next year, supported by continued participation from mainland issuers and the city's growing focus on technology, industrial, and consumer sectors.