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Hong Kong’s market revival is clear in trading activity and capital raising, but it is not an across-the-board rise in share prices. Turnover and IPO fundraising surged in 2025 and remained strong in the first half of 2026; yet the Hang Seng Index ended the second quarter of 2026 below its end-March level. The distinction matters: a busier market is not the same thing as rising returns for every investor or company.
What does “market revival” mean in Hong Kong?
Here, revival describes a sharp increase in the amount of trading and new equity capital raised. It does not establish that all Hong Kong-listed shares recovered, that the rally will continue, or that the market is undervalued. Three measures tell different parts of the story:
- Turnover measures the value of shares traded. Higher turnover signals more activity, not higher investment returns.
- IPO fundraising measures capital raised by newly listed companies. It says something about issuance and demand for listings, not how those shares perform afterward.
- Index performance tracks the value of a selected basket of shares. It can move differently from turnover and fundraising.
The figures below are from Hong Kong Exchanges and Clearing Limited (HKEX), the exchange operator, and Hong Kong Government releases. HKEX’s activity statistics are useful measures, but its explanations of what is attracting investors are the exchange’s own account rather than independently measured causal findings.
How strong was the rebound in 2025?
HKEX reported average daily cash-market turnover of HK$249.8 billion in 2025, up 89.5% from 2024. That is a large increase in trading value; it does not mean the average share price or investor returns rose by 89.5%. The government’s 2026–27 Budget retrospective separately reported that the Hang Seng Index rose 28% over 2025.
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Fundraising also accelerated. HKEX said 119 new listings raised HK$285.8 billion in 2025, and that new-economy companies accounted for more than two-thirds of listings. Follow-on offerings raised US$66 billion, up 136% from US$27.9 billion in 2024, according to Dealogic figures cited by HKEX. IPOs and follow-ons are different routes for companies to raise equity capital; neither figure measures secondary-market returns.
In its year-in-review, HKEX attributed the stronger environment to factors including global investors seeking 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 proof that any one factor caused the increase.
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Did the momentum continue in 2026?
Yes, by the exchange’s measures of activity and issuance. HKEX’s July 16, 2026 half-year update covers data through June 30 and reports continued growth in cash trading and IPO fundraising. It characterized the period this way: “Hong Kong’s markets extended their strong 2025 momentum into H1 2026, with robust trading activity across equities, derivatives and cross-border channels.” That is HKEX’s assessment; the figures below show the specific measures behind it.
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| Measure | 2025 | H1 2026 |
|---|---|---|
| Average daily cash-market turnover | HK$249.8 billion, up 89.5% year over year (HKEX) | HK$283.0 billion, up 17.8% year over year (HKEX; through June 30) |
| IPO listings and funds raised | 119 IPOs; HK$285.8 billion raised (HKEX) | 87 IPOs; HK$210.2 billion raised, versus HK$109.4 billion from 44 listings in H1 2025 (HKEX; through June 30) |
| Southbound Stock Connect average daily turnover | not stated (HKEX) | HK$123.1 billion, up 10.9% year over year (HKEX; through June 30) |
| Northbound Stock Connect average daily turnover | not stated (HKEX) | RMB345.3 billion, up 101.6% year over year (HKEX; through June 30) |
| Exchange-traded product (ETP) average daily turnover | not stated (HKEX) | HK$48.4 billion, up 31.8% year over year; 250 ETPs at end-June versus 214 a year earlier (HKEX) |
Stock Connect turnover is one indicator of cross-border participation. Southbound trading refers to mainland investors trading eligible Hong Kong securities; northbound trading refers to Hong Kong and international investors trading eligible mainland securities. Neither measure by itself captures all foreign investor sentiment or all cross-border investment.
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HKEX also described interest in technology and AI-related shares, high Stock Connect activity, new listings, and a broader product range that includes technology, gold, and cross-market ETFs. This is the exchange’s description of market activity. The availability of an ETF or a focus on a popular theme does not guarantee that it provides suitable exposure or will perform well.
Did the stock market—and the economy—recover across the board?
No such conclusion follows from the activity figures. Hong Kong Government reporting on August 14, 2026, said the Hang Seng Index closed the second quarter below its end-March level, even as turnover rose by more than 20% year over year in Q2 and IPO activity remained vibrant. In the government’s words, the market had “fluctuating movements” while “trading activity remained vibrant.” This is the key distinction: a market can be busy and attract new listings while its headline index falls over a particular period.
The broader economy expanded, but its growth rate eased quarter to quarter. Real GDP grew 4.3% year over year in Q2 2026, following 5.9% growth in Q1, according to the government. It described Q2 growth as underpinned by buoyant external trade and resilient domestic demand, and also reported advances in residential property transactions and prices. These economic indicators add context; they do not establish that listed companies or shareholders all benefited equally.
For comparison, the government’s retrospective for 2025 reported real growth of 12% in goods exports, 6.3% in services exports, 1.7% in private consumption, and 4.3% in overall investment expenditure. It also reported a 28% rise in the Hang Seng Index over that year. Those are full-year 2025 figures, not a description of the separate Q2 2026 outcome.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What should investors take from the revival?
The strongest supported conclusion is that Hong Kong’s market became substantially more active and raised much more equity capital in 2025, with those trends continuing into H1 2026. The data do not show that every stock rose, that trading activity guarantees future gains, or that the index advanced in every quarter.
Quick Recap
- Use turnover to understand how much trading took place, not as a proxy for returns.
- Read IPO proceeds and listing counts as measures of fundraising and issuance, not proof that new listings will perform well.
- Check the period: full-year 2025 index gains and H1 2026 activity do not erase the government’s report of a lower Hang Seng Index at the end of Q2 2026 than at end-March.
- Treat exchange commentary about investor interest and market reforms as the operator’s explanation, rather than a guarantee of continuing momentum.
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