Notes from Hong Kong: public markets are staging a comeback

Reports of the death of public markets are exaggerated.

Do companies need to list? How are public markets adapting?

​At this year’s HSBC Global Investment Summit in Hong Kong, one of the most compelling discussions brought together the leaders of three of the world’s major exchanges: Hong Kong Exchanges and Clearing, the London Stock Exchange (LSE) and Nasdaq. Despite differing regional perspectives, there was striking agreement on one point: reports on the death of public markets have been greatly exaggerated.
 
For years, investors have been fed the idea that in the modern financial era, companies can stay private indefinitely and no longer need to list. The evidence suggests otherwise. Hong Kong’s market led the world for IPOs in 2025, with 120 companies raising over US$37 billion, while the LSE and Nasdaq both pointed to a stream of companies that had listed with them, and robust pipeline ahead.
 
The real debate is no longer public versus private. Instead, the discussion has shifted towards how companies move more seamlessly between the two. Exchanges increasingly see their role not simply as venues for IPOs, but as partners throughout a company’s entire funding journey.
 
The London Stock Exchange described this as a “funding continuum”: helping companies access capital from early-stage private funding through to a public listing and beyond. New products, such as regulated private market platforms, are being developed to give companies greater flexibility, provide liquidity to early investors and employees, and allow firms to remain private for longer without losing access to capital.
 
At the same time, public markets still offer something unique and important: democratisation. Public listings allow far more investors to participate in the growth of successful companies, rather than leaving the fruits of that value creation solely in the hands of a small group of private investors.
 
Another major theme was the increasing globalisation of capital markets. While most companies still tend to list in their home market, exchange leaders agreed that many businesses eventually outgrow their domestic base. In particular, fast-growing companies in Asia often reach a point where they require access to deeper pools of international capital. Rather than competing directly, exchanges increasingly see opportunities to collaborate, whether through secondary listings, cross-border partnerships or complementary products.
 
The discussion also highlighted how quickly market structure is changing. Nasdaq’s plans to move towards 23-hour trading reflect growing demand from global retail investors, particularly in Asia. However, there was caution that longer trading hours could not entail a drop in standards. Liquidity, investor protection and market integrity remain critical. Exchange leaders repeatedly stressed that technology should not come at the expense of fairness or transparency.
 
Tokenisation and digital assets were another focus. Rather than replacing traditional markets, tokenisation is increasingly being viewed as a tool to reduce friction, improve settlement and make markets more efficient. The consensus was clear: innovation will only succeed if it sits within a robust regulatory framework.
 
Finally, artificial intelligence is rapidly becoming embedded across exchanges. AI is already being used to review company filings, monitor markets for misconduct, improve investor relations and make vast amounts of market data easier to analyse. Yet with AI also increasing the risks of misinformation and market manipulation, exchanges see their role as ensuring that technology is used responsibly.
 
The conclusion from Hong Kong was clear: capital markets are not standing still. Public and private markets are converging, technology is reshaping the way investors access opportunities, and exchanges are evolving from trading venues into broader capital market ecosystems.