Analysis of the Impact of Record-High Hong Kong Company Registrations on the Hong Kong Stock Market and the Competitiveness of the Relocation Scheme

Now I will write a detailed financial analysis report for you based on all the collected data.

---

According to the latest data released by the Companies Registry of the Hong Kong Special Administrative Region Government, as of the end of 2025, the total number of registered companies in Hong Kong reached 1.557 million, hitting a record high, with a year-on-year increase of 6.6%[1]. This data indicates that Hong Kong’s appeal as an international business hub continues to strengthen.

Indicator	2025 Data	Year-on-Year Change
Total Number of Registered Companies	1.557 million	+6.6%
Newly Established Companies	195,300	+34.7%
New Business Establishments of Non-Hong Kong Companies	1,532	+3%
Limited Partnership Funds	1,347	+35.1%
Open-Ended Fund Companies	676	+43.2%

, private companies dominate with 1.5377 million registered; guarantee companies increased by 501 to 18,300; public companies increased by 74 to 1,104[2]. These data indicate that Hong Kong’s company registration ecosystem is developing in a diversified manner, attracting not only a large number of start-ups but also mature enterprises seeking international expansion.

The significant growth in the number of Hong Kong company registrations is highly correlated with the improvement of liquidity in the Hong Kong stock market. In the first three quarters of 2025, the Hong Kong stock market performed strongly, with an

[3]. This growth rate is rare in recent years, reflecting the renewed interest of international capital in Chinese assets.

Indicator	Q1-Q3 2025	Same Period in 2024	Year-on-Year Change
Average Daily Turnover of Equity Securities	HK$238.74 billion	HK$102.7 billion	+132%
Average Daily Turnover of Hong Kong Stock Connect	HK$125.94 billion	HK$38.3 billion	+229%
Average Daily Turnover of Shanghai-Shenzhen Stock Connect	RMB206.4 billion	RMB123.3 billion	+67%

Notably,

[4]. This structural change means that mainland investors have become one of the most important incremental capital sources for the Hong Kong stock market. The average daily turnover of the Hong Kong Stock Connect surged 229% year-on-year, fully demonstrating the significant increase in the participation of southbound capital in the Hong Kong stock market.

The Hong Kong stock market set multiple historical records in trading activity in 2025:

• Average daily turnover in September exceeded HK$300 billion for the first time
  , hitting a monthly high of HK$316.7 billion[3]
• Average daily number of stock option contracts traded on HKEX increased 27% year-on-year
• Daily turnover of ETFs climbed to HK$33.8 billion, with a year-on-year increase of 184%
• Average daily trading volume of RMB currency futures increased 43% year-on-year

There is a close correlation between the increase in market activity and the growth in the number of company registrations. A considerable proportion of newly registered companies have potential listing and financing needs, providing a steady stream of high-quality targets and incremental capital for the Hong Kong stock market.

The Hong Kong IPO market staged a strong recovery in 2025,

. According to Deloitte data, a total of 114 new stocks were listed throughout the year, with a total financing amount of approximately HK$286.3 billion. Compared with 70 new stocks raising HK$87.5 billion in 2024, [5].

Indicator	Data	Market Status
Number of IPOs	114	+63% year-on-year
Total Fundraising	HK$286.3 billion	Global No.1
Number of Mega IPOs	8	Each over HK$10 billion
A+H Share Listing Projects	19	Accounting for 50% of total financing

Among the top 10 new stocks globally in 2025, Hong Kong stocks accounted for 4 seats, with CATL (Contemporary Amperex Technology Co., Limited) and Zijin Gold International ranking as the world’s largest and second-largest IPO projects respectively[6]. This fully demonstrates that Hong Kong’s appeal to large high-quality enterprises is recovering.

A series of reform measures implemented by HKEX in recent years have achieved remarkable results:

1. Streamlined Listing Approval Procedures
   : Shortened new stock settlement cycles, optimized the timeline for new listing application approval processes
2. Specialist Technology Company Listing Regime (Chapter 18C)
   : 88 biotech and specialist technology companies have listed in Hong Kong since its implementation[6]
3. Expansion of Shanghai-Shenzhen-Hong Kong Stock Connect
   : The scope of eligible securities has been further expanded to facilitate the participation of international investors
4. Stamp Duty Reduction
   : Reduced the stock transaction stamp duty rate to 0.1% in 2023 to consolidate market competitiveness
5. Trading Arrangements for Severe Weather
   : Ensures the market can operate normally under any weather conditions

These reform measures have reduced the listing thresholds and costs for enterprises, improved market efficiency, and directly driven the recovery of the IPO market.

Based on the current backlog of over 300 listing applications, Deloitte predicts that approximately 160 new stocks will be issued in the Hong Kong new stock market in 2026, with a

[5]. Mega IPOs will mainly come from the following areas:

• A+H listings of leading mainland enterprises
• Enterprises in the technology, media, and telecommunications sectors
• Healthcare and pharmaceutical enterprises
• Return of Chinese concept stocks listed in the US
• International companies seeking listings in Asia

Since the implementation of the company relocation scheme on May 23, 2025, the market has responded positively. As of the end of 2025, the Hong Kong Companies Registry has received

, among which 6 non-Hong Kong corporations from Luxembourg, the Cayman Islands, or Bermuda have successfully relocated to Hong Kong[1].

Advantage Category	Details
Streamlined Process	Provides a simple and cost-effective relocation channel
Continuity of Identity	Retains the company’s legal identity, allowing business operations to continue without interruption
Cost Savings	Eliminates complex and expensive judicial procedures
Enhanced Competitiveness	Strengthens Hong Kong’s competitiveness as an international business and financial center

The long-term impact of the relocation scheme on the Hong Kong stock market is mainly reflected in the following aspects:

1. Expand Reserve Resources for Listed Companies
   : Among the successfully relocated enterprises, many are mature companies that meet listing requirements, providing a stable source of targets for Hong Kong IPOs

2. Attract High-Quality Chinese Enterprises to Return
   : Large central enterprises such as China Resources Gas have started procedures to relocate back to Hong Kong; these enterprises have strong strength and sound fundamentals[7]

3. Enhance the Appeal of Hong Kong as an Offshore Company Hub
   : A large number of enterprises previously registered in offshore financial centers such as the Cayman Islands and BVI now have a more convenient channel to relocate back to Hong Kong

4. Strengthen the “Super Connector” Role
   : The relocation scheme enables Hong Kong to better connect the mainland and international capital markets, consolidating its status as an international financial center

Based on market feedback and opinions from professional institutions, the further optimization directions for the relocation scheme may include:

• Improve legal adaptability guidelines to help enterprises better adapt to Hong Kong’s legal environment
• Optimize tax arrangement guidelines to clarify tax treatment during the relocation process
• Establish a more efficient one-stop service mechanism to shorten relocation approval time

As two major international financial centers in the Asia-Pacific region, Hong Kong and Singapore each have their own advantages in the field of company registration. According to the latest international rankings:

Ranking Indicator	Hong Kong	Singapore	Hong Kong’s Advantage
World’s Freest Economy	1st	Top Tier	✓
Global Financial Centers Index	3rd	4th	✓
Global Competitiveness Ranking	3rd	Top 5	✓
World Talent Ranking	4th (1st in Asia)	Top Tier	✓
Digital Competitiveness Ranking	4th	Top Tier	✓

Hong Kong maintains a leading position in multiple key indicators, especially narrowing the gap with the top two in the global financial center rankings, indicating that its competitiveness is strengthening[8].

1. Tax Policy
   : Implements a simple, low-tax regime, with no inheritance tax or capital gains tax, making it an ideal location for asset and wealth management[9]
2. Registration Efficiency
   : Relatively convenient and efficient processes
3. Market Access
   : Backed by the huge mainland China market, with a unique “Super Connector” status
4. Financing Platform
   : HKEX ranks first globally in IPO fundraising, with sufficient capital market depth

1. Internationalization
   : Strong business atmosphere, with access to the Southeast Asian market
2. Digital Infrastructure
   : Outstanding achievements in digital government development, leading in smart city construction
3. Free Trade Agreement Network
   : Has an extensive network of free trade agreements
4. Business Environment
   : Political stability and a sound legal system

The newly introduced relocation scheme in Hong Kong may have the following impacts on the regional competitive landscape:

1. Attract Offshore Companies to Return
   : Provides a channel for companies registered in traditional offshore locations such as the Cayman Islands, BVI, and Bermuda to relocate back to Hong Kong
2. Strengthen Competition with Singapore
   : Singapore has geographical advantages in attracting Southeast Asian companies, while Hong Kong forms differentiated competition by relying on the mainland market
3. Build a Listing Hub
   : Through one-stop relocation + listing services, further consolidate Hong Kong’s status as a preferred listing platform

Looking ahead, Hong Kong has unique advantages in the following aspects:

• Guangdong-Hong Kong-Macao Greater Bay Area Opportunities
  : As a core city in the Greater Bay Area, Hong Kong can share the dividends of regional coordinated development
• Offshore RMB Business
  : The world’s largest offshore RMB business center
• Family Office Ecosystem
  : Approximately 2,700 single-family offices operate in Hong Kong, with asset and wealth management business reaching HK$31.2 trillion[9]
• Interconnection Mechanisms
  : Mechanisms such as the Shanghai-Shenzhen-Hong Kong Stock Connect and Bond Connect continue to be deepened

1. Record-high company registrations
   reflect the continued confidence of international enterprises in Hong Kong as a business hub, forming a positive cycle with the improvement of Hong Kong stock market liquidity and IPO recovery

2. Significant improvement in liquidity
   : Average daily turnover of Hong Kong stocks increased 126% year-on-year, and Hong Kong Stock Connect turnover increased 229%, indicating a significant increase in the participation of both domestic and foreign capital

3. Strong return of the IPO market
   : Ranked first globally in fundraising in 2025, with a surge in mega IPOs and active listings of technology enterprises

4. Relocation scheme has achieved initial results
   : 30 applications and 6 successful relocations, with the system framework recognized by the market

5. Stable competitive advantages
   : Hong Kong maintains a leading position in the Asia-Pacific region in terms of financial center rankings, talent attraction, and digital competitiveness

Based on the above analysis, investors should pay attention to the following investment opportunities:

• HKEX (0388.HK)
  : As the core infrastructure provider of the Hong Kong stock market, it will directly benefit from improved market liquidity and IPO recovery[4]
• New Economy Sector
  : Benefiting from the reform of the specialist technology company listing regime, the number of IPOs in sectors such as technology, healthcare, and new energy is expected to continue to grow
• Stocks Heavily Held by Southbound Capital
  : High-quality blue-chip stocks continuously bought by southbound capital, such as Tencent (0700.HK) and Alibaba (9988.HK)
• IPO Beneficiary Sectors
  : Service providers in the IPO industry chain, such as securities firms, accounting firms, and law firms

• Global macroeconomic uncertainties may affect market liquidity
• Geopolitical factors may affect cross-border capital flows
• There is uncertainty in the pace of new stock issuances
• The effects of the relocation scheme need further observation

---

[1] Xinhua News Agency - Total number of registered companies in Hong Kong hits record high of 1.557 million (http://www.news.cn/20260117/674cc480f80249c187dc6a6113abdf5d/c.html)

[2] China News Service - Hong Kong has over 1.557 million companies as of end-2025, hitting a record high (https://www.chinanews.com.cn/cj/2026/01-16/10553335.shtml)

[3] Hong Kong Exchanges and Clearing Limited - Quarterly Performance Report for the Nine Months Ended 30 September 2025 (https://www.hkex.com.hk/-/media/HKEX-Market/News/News-Release/2025/251105news/251105news_c.pdf)

[4] First Shanghai Securities - Research Report on Hong Kong Exchanges and Clearing Limited (388) (https://pdf.dfcfw.com/pdf/H3_AP202508081723716312_1.pdf)

[5] Deloitte China - 2025 Review and 2026 Outlook for Mainland China and Hong Kong IPO Markets (https://www.deloitte.com/cn/zh/about/press-room/mainland-and-hk-ipo-markets-2025-review-2026-outlook.html)

[6] Securities Times - HKEX rings 6 listing bells today, wrapping up 2025 Hong Kong IPOs (https://www.stcn.com/article/detail/3565226.html)

[7] Department of Justice, HKSAR Government - Success Stories of Hong Kong Professional Services Supporting Mainland Chinese Enterprises to Go Global (https://www.doj.gov.hk/en/publications/pdf/Go_Global_Success_Stories_Booklet.pdf)

[8] Xinhua News Agency - A Brighter Pearl: Hong Kong Takes New Steps from Stability to Prosperity in 2025 (http://www.news.cn/gangao/20251231/6e64935864dd41d0b4e5be5259b835e0/c.html)

[9] Legislative Council of Hong Kong - Policy Pulse: Consolidating Hong Kong’s Status as an International Financial Centre (https://www.legco.gov.hk/yr2025/chinese/panels/policy-pulse/pp2025-03-consolidating-hong-kongs-status-as-an-international-financial-centre-c.pdf)

[10] Sina Finance - Total number of newly established local companies and relocated companies in Hong Kong in 2025 reaches 195,343 (https://finance.sina.com.cn/stock/hkstock/hkstocknews/2026-01-16/doc-inhhncwv7002561.shtml)

---

Report Generation Date: January 17, 2026
Data Sources: Jinling AI Financial Database, HKEX Public Information, Major Financial Media
Disclaimer: This report is for reference only and does not constitute investment advice. Investors should make independent judgments based on their own circumstances.