A wave of Chinese technology companies has rushed to apply for initial public offerings (IPOs) in Hong Kong following recent reforms to the city’s confidential filing rules, fueling a booming listing market, according to the Financial Times.
In May, Hong Kong regulators introduced a confidential filing option specifically for lossmaking technology and biotechnology firms. This allows companies to submit their financial and operational details to the exchange and regulators for review before publicly announcing their IPO intentions.
Among the companies taking advantage of the new rules are leading chipmaker Biren Technology, artificial intelligence start-up Zhipu—valued at over $5 billion in a private funding round earlier this year—and Tencent-backed Enflame Technology. Biren and Enflame are currently lossmaking but anticipate significant revenue growth in 2025, partly driven by export restrictions affecting US semiconductor giant Nvidia. Another AI company, MiniMax, valued at approximately $4 billion, filed its paperwork around mid-July, sources told the Financial Times.
Hong Kong has seen a record number of IPO applications in the first half of 2025, boosted by a soaring equity market and more flexible listing requirements compared with mainland China. Notably, while companies applying for IPOs on the mainland are barred from raising additional capital during the approval period, Hong Kong allows ongoing fundraising, an important advantage for fast-growing tech firms that typically require multiple funding rounds annually.
Confidential filings also offer strategic benefits, shielding companies from competitors and avoiding premature exposure before approval by China’s securities regulator—a process that can take about a year due to a backlog of applications.
Data compiled by the Financial Times shows that in the first seven months of this year, 12 Chinese tech firms applied to list in Hong Kong under the city’s 18C provision, which permits lossmaking technology companies to go public. This represents the highest number since the rule’s introduction in 2023 and does not include confidential filings that remain undisclosed.
Fang Liu, a partner at law firm Clifford Chance in Hong Kong, told the Financial Times that confidential filings help companies avoid revealing sensitive information that could attract “unfriendly attention” such as complaints or regulatory scrutiny.
Hong Kong’s IPO market is also benefiting from geopolitical tensions that have made it more difficult for Chinese firms to list in the US or UK. The China Securities Regulatory Commission has encouraged companies aiming for overseas listings to prioritize Hong Kong, insiders say.
Johnson Chui, head of global issuer services at Hong Kong Exchanges and Clearing, said, “HKEX’s ongoing efforts to refine and innovate its listing regime reflect a strong commitment to staying ahead of industry and technological trends.”
