This undated photo shows people waiting in line in front of a Mixue store in Sydney, Australia. [Photo/Xinhua]

Shares of China's beverage giant Mixue Group soared 43.21 percent at closing from its opening price on its debut on the Hong Kong Stock Exchange on Monday.

On its opening day, Mixue's shares began trading at 262 Hong Kong dollars, up 29.38 percent from its issue price and closed at 290 Hong Kong dollars, with a total trading volume of 4.334 billion Hong Kong dollars.

The recent influx of large IPOs in the Hong Kong market signals a robust fundraising environment, bolstered by supportive measures introduced last April by the China Securities Regulatory Commission (CSRC), the country's top securities regulator.

These measures aim to facilitate the listing of leading Chinese mainland enterprises in Hong Kong, providing a significant boost to the local stock market.

The Hong Kong Stock Exchange reported that Mixue Group's IPO is the largest in the market for 2025 to date and represents the highest market capitalization for a company in the ready-to-drink tea sector. This event also set a new record for subscriptions for new shares in the Hong Kong market.

In 2024, Mixue Group reported a beverage output of approximately 9 billion cups and generated retail sales of around 58.3 billion yuan, up 21.9 percent and 21.7 percent respectively.

As of September 2024, the company has expanded its franchise operations to over 45,000 stores across 11 countries and regions, making it one of the largest global brands in terms of store count.

The positive trend in the Hong Kong stock market, bolstered by a series of successful IPOs, enhances its allure to potential listings. Reports by Hong Kong Exchanges and Clearing Ltd. (HKEX) indicated that new listings in 2024 raised a total of 87.74 billion Hong Kong dollars, a more than 90 percent increase from the previous year.

Also on Monday, the Hong Kong stock market's benchmark Hang Seng Index gained over 2 percent during morning trading. The Hang Seng Tech Index, which represents the 30 largest technology companies listed in Hong Kong, rallied over 2 percent as well during the same period.

Ji Mo, chief China economist of DBS Group Research, underscored that Hong Kong remains a key destination for overseas financing for Chinese enterprises, likely to become even more active in the current market environment.

This trend underscores Hong Kong's status as an international financial hub, supported by ongoing central government policies. Liu Gang, chief overseas strategy analyst of the research department of China International Capital Corporation, believed that listings like Mixue Group's can further boost market confidence in Hong Kong's stock exchange.

Mixue Group's successful listing capitalizes on the advantages of the Hong Kong market, said Mandy Zhu, UBS Asia's vice-chair of global banking.

She emphasized that IPOs in Hong Kong can provide companies with an international platform and a more diversified avenue for financing, reaffirming that the Hong Kong market remains one of the core choices for outstanding enterprises.

In 2024, Hong Kong ranked as one of the world's top four IPO markets, with listing activities and fundraising volumes far exceeding those of the previous year.

Bonnie Chan, chief executive officer of HKEX, underscored that 2024 has seen the largest influx of new listings since 2021, with trading volumes hitting historic highs.