Hong Kong and India have emerged as the powerhouses driving a blockbuster year for fundraising in Asia in 2025. The surge in capital raising has been fueled by a combination of initial public offerings (IPOs), private placements, and debt offerings, demonstrating strong investor confidence in the region.
Hong Kong has reclaimed its position as the leading IPO market globally, surpassing the United States, with a remarkable 210% increase in funds raised compared to the previous year. In 2025, the city raised $272.1 billion across 100 listings, marking a significant resurgence in its capital markets. This achievement marks the first time since 2013 that Hong Kong has secured the top spot in Asia for fundraising, ranking second only to the U.S. on the global stage. Chinese companies have been central to Hong Kong's dealmaking boom, seeking substantial capital to power their global expansion strategies. Contemporary Amperex Technology Co., a battery maker, led the charge with a $5.3 billion listing, the second-largest globally in 2025. Electric-vehicle maker BYD Co. and EV-to-smartphones giant Xiaomi Corp. also contributed significantly, each raising over $5 billion through share placements. This flurry of activity occurred even as the U.S. implemented tariffs and some deals encountered political resistance.
India has also experienced a record-breaking year for IPOs, marking the second consecutive year of unprecedented activity. The country's IPO market has generated more than $20 billion in proceeds, driven by an expanding pool of funds from domestic mutual funds and retail investors. Existing shareholders have capitalized on the favorable market conditions, actively selling their holdings through block trades. Several major companies are preparing to list on the Mumbai exchange, including Reliance Industries' telecommunications unit, Jio Platforms, which could become the country's largest-ever IPO. International companies with substantial operations in India are also considering listing their subsidiaries to take advantage of rising valuations. In 2025, India's IPO fundraising has already hit a record ₹1.6 Lakh Crore. Fresh public issue filings are adding ₹6,600 Crore to the pipeline.
The overall upswing in fundraising activity has been broad-based across Asia, with four of the world's five largest share-sale venues located on the continent. Besides Hong Kong and India, mainland China and Japan have also demonstrated strong market performance. For the first time, four Asian markets have ranked among the top five globally for share sales. Southeast Asia's IPO market is also seeing a rebound, with Singapore, Malaysia, Indonesia, and Vietnam collectively raising over US$4.7 billion.
While the IPO market has thrived, private equity and venture capital investments into Indian startups experienced a dip in Q3 2025, reaching a six-quarter low of $3 billion. However, funding levels remain higher than in 2023, indicating that investors are becoming more selective and focusing on sustainable growth. Financial services, software, and pharmaceuticals have emerged as the top funded sectors in India.
Looking ahead, the outlook for Asia's fundraising markets remains positive. Hong Kong is expected to maintain its momentum into 2026, supported by a substantial pipeline of IPO applications. India's IPO market is also projected to remain strong, with several high-profile listings anticipated in the coming months.
