Hong Kong’s market revival is real in trading activity and fundraising, but it is not evidence that every stock or the Hang Seng Index rose. In 2025, cash-market turnover and IPO proceeds surged; activity remained strong in the first half of 2026. Yet the Hang Seng Index finished Q2 2026 below its end-March level. The distinction matters: a busier market can help companies raise capital without guaranteeing returns to investors.
What does “market revival” mean in Hong Kong?
The clearest evidence is a rebound in market activity—more trading and substantial new share issuance—not a uniform recovery in share prices. Average daily cash-market turnover measures the value of shares traded per day. IPO proceeds measure capital raised by companies listing for the first time. Neither figure tells an investor whether a particular stock gained value or whether the market will keep rising.
For a broader picture, keep four measures separate:
- Trading activity: cash-market turnover and exchange-traded product (ETP) turnover.
- Fundraising: IPOs and follow-on share offerings.
- Investor returns: index or individual-share price changes over a defined period.
- Economic growth: changes in output, exports, consumption and investment.
What changed in 2025?
Hong Kong Exchanges and Clearing Limited (HKEX) reported that average daily cash-market turnover reached HK$249.8 billion in 2025, an 89.5% increase from 2024. This is a measure of trading activity, not a return earned by investors. The Hong Kong Government separately reported that the Hang Seng Index rose 28% over 2025, a price-performance measure for that index and period—not proof that every Hong Kong-listed share rose.
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Fundraising also strengthened. HKEX reported 119 new listings that raised HK$285.8 billion in 2025, with new-economy companies accounting for more than two-thirds of listings. Follow-on offerings raised US$66 billion, compared with US$27.9 billion in 2024, according to Dealogic figures cited by HKEX; the exchange described that as a 136% increase. IPO proceeds and follow-on fundraising indicate companies’ access to capital, not the subsequent performance of their shares.
HKEX attributed the stronger market to factors including global investors’ interest in diversification and exposure to China’s innovation-led growth, new-economy issuers, equity-market reforms, product expansion and stronger international connections. These are the exchange’s explanations, not independently measured estimates of how much each factor caused the increase.
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Did the revival continue in 2026?
HKEX’s July 16, 2026 half-year update, covering activity through June 30, reported continued strength in trading and fundraising. Its figures show that turnover grew year over year while IPO proceeds in the first half were already substantial. The periods are not directly comparable as annual totals: H1 covers six months, while 2025 figures cover a full calendar year.
| Measure | 2025 | H1 2026 |
|---|---|---|
| Average daily cash-market turnover | HK$249.8 billion; up 89.5% year over year | HK$283.0 billion; up 17.8% year over year |
| New listings and IPO proceeds | 119 IPOs; HK$285.8 billion raised | 87 IPOs; HK$210.2 billion raised |
| Southbound Stock Connect average daily turnover | Not stated in the cited HKEX 2025 figures | HK$123.1 billion; up 10.9% year over year |
| ETP average daily turnover | Not stated in the cited HKEX 2025 figures | HK$48.4 billion; up 31.8% year over year |
HKEX also reported that northbound Stock Connect average daily turnover was RMB345.3 billion in H1 2026, up 101.6% year over year. At the end of June, there were 250 ETP products, compared with 214 a year earlier. Southbound turnover is one indicator of mainland Chinese investor participation through Stock Connect; it is not a complete measure of foreign investor sentiment or all cross-border investment.
The exchange described interest in technology and AI-related shares, record Stock Connect activity, new listings and product expansion, including technology, gold and cross-market ETFs. That description helps explain the exchange’s view of demand and product development, but does not establish that a particular theme or ETF delivered positive returns or offers suitable exposure for every investor.
Why the headline activity does not prove an across-the-board recovery
The Hong Kong Government’s August 14, 2026 release gives an important counterpoint. It reported real GDP growth of 4.3% year over year in Q2 2026, following 5.9% in Q1, with Q2 expansion underpinned by buoyant external trade and resilient domestic demand. It also reported that residential property trading and prices advanced. Those economic indicators provide context, but they are not stock-market returns.
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In the same release, the Government said the Hang Seng Index closed Q2 below its end-March level even as trading activity remained vibrant. Average daily turnover in Q2 was more than 20% higher than a year earlier, and IPO fundraising was described as vibrant. That combination captures the limits of the revival claim: activity rose, but the index fell over the quarter. A higher turnover figure cannot be used as a substitute for a positive index return.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What may be driving the revival—and what remains uncertain?
The available explanations combine market-specific and economic factors. HKEX points to investor demand for diversification and China-related innovation exposure, new-economy listings, reforms and a wider range of products. Government reporting offers a separate macroeconomic picture: in 2025, real goods exports rose 12%, services exports 6.3%, private consumption 1.7% and overall investment expenditure 4.3%. These government-reported full-year figures, alongside the 28% rise in the Hang Seng Index over 2025, describe a stronger year; they do not establish what drove each market move or predict what happens next.
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The figures support a conclusion that Hong Kong’s exchange became more active and companies raised more capital in 2025, with strong activity continuing through June 2026. They do not establish that gains were broad across listed companies, that the market is undervalued, or that the rally will persist. For an investor, the relevant next question is not simply whether the market is “back,” but which exposure is being considered, what period and risk it represents, and whether the investment case depends on trading activity, company fundamentals or index performance.
Sources: HKEX 2025 market figures; HKEX H1 2026 update; Hong Kong Government Q2 2026 economic release; Hong Kong 2026–27 Budget retrospective.
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