New Economy Drives Transformation of Listed Companies, AI and Tech Stocks in Focus

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In 2025, Hong Kong and global capital markets continue to experience a surge in enthusiasm for the new economy and AI tech stocks.

• Futu served over 200 IPO clients in 2022, covering new economy companies such as Meituan, Kuaishou, and Xiaomi.
• Over 1,100 listed companies use its digital investor relations platform, reflecting the trend of digital transformation.
  Tech stocks and new economy sectors drive listed companies to actively embrace innovation, with capital market activity continuing to rise, bringing new insights to businesses and investors.

Key Points

• In 2025, the new economy and AI tech stocks become the focus of the capital market, driving listed companies to actively transform and upgrade.
• Policy support and international capital inflows create a favorable environment for tech stocks, enhancing market confidence and liquidity.
• AI technology is widely applied in corporate operations, improving efficiency and competitiveness, becoming a key factor in attracting investment.
• Listed companies enhance resilience and growth potential through innovative business models and capital operations, meeting market challenges.
• Investors should focus on AI and new technology developments, carefully assess risks, and diversify asset allocations to seize opportunities.

New Economy Drivers

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Market Trends

In 2025, Hong Kong’s IPO market performs vibrantly, attracting global capital attention. The PHBS Think Tank of Peking University HSBC Business School released a macroeconomic analysis report in Q1 2025, stating that new economy industries such as electronics and transportation equipment receive strong policy support, boosting investment and production. The report predicts China’s GDP growth of about 5.0% in 2025, with the auto export market showing a positive cycle and the real estate market gradually stabilizing. These factors collectively contribute to a recovery in market confidence.

The Global Information Inc. (GII) global competitive intelligence tools market report, published in May 2025, indicates that the market size is expected to grow by approximately 27.95 billion USD from 2024 to 2029, with a CAGR of 9.5%. This reflects the development potential of new economy-related industries, offering listed companies more opportunities for innovation and transformation.

In Q1 2025, Hong Kong’s IPO fundraising total was nearly three times that of the same period last year, marking the strongest start since 2021. Market sentiment has significantly improved, with liquidity notably enhanced, providing an ideal foundation for high-tech company listings. Global investors remain optimistic about AI prospects, with AI applications becoming a market focus, leading to higher valuations for related companies and seizing listing opportunities.

The China Securities Regulatory Commission actively promotes capital market optimization, supporting high-quality but not-yet-profitable tech startups to go public, fostering technological innovation. These policies and market trends together build new economy momentum, injecting fresh vitality into the future capital market.

Tech Stock Surge

Tech stocks become the protagonists of the 2025 capital market. HKEX data shows that southbound capital flows have grown significantly from 1% to 22% as of May 22, 2025, since the launch of the stock connect program in 2015. Mainland Chinese capital’s influence on Hong Kong’s stock market has significantly increased. This capital inflow is primarily driven by AI innovation, with surging investor demand for AI and tech stocks, and HK stocks’ valuations and dividend yields also proving attractive.

• Southbound capital provides liquidity and stability during market volatility, reflecting investor confidence in tech and new technology sectors.
• During the Google Cloud Summit 2025, Bank of East Asia executives shared how AI enhances banking operational efficiency, demonstrating AI’s practical applications and investment enthusiasm in Hong Kong’s financial services sector.
• Overall data and examples confirm that investment in AI and new technology sectors continues to grow, becoming a key driver of market capital flows.

The new economy, AI, and trendy collectibles economy are gradually reshaping the capital market landscape. Listed companies actively embrace innovative technologies, seeking transformation and upgrades, offering investors more diverse choices and opportunities.

Listed Company Transformation

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AI Applications

In 2025, AI technology has become a core driver of listed company transformation. Many companies actively adopt AI to enhance operational efficiency and market competitiveness. For example, OSL Group focuses on digital assets and blockchain technology, using AI to optimize transaction security and compliance processes. OSL Group employs machine learning models to monitor transaction anomalies in real time, reducing risk incidents. This innovative application not only boosts user trust but also attracts more institutional clients.

Several Hong Kong fintech companies are also actively deploying AI solutions. Some banks use intelligent customer service systems to improve customer experience and reduce labor costs. AI technology helps listed companies analyze vast amounts of market data, predict industry trends, and formulate more precise business strategies. These application scenarios show that AI has permeated various aspects of corporate operations, driving the industry toward digitalization and intelligence.

AI not only improves efficiency but also becomes a key selling point for listed companies to attract international capital. Investors generally believe that companies with strong AI capabilities have greater growth potential, standing out in fierce market competition.

Business Model Transformation

New technologies drive listed companies to continuously adjust business models to adapt to market changes. Tech unicorn CrowdStrike is a prime example. The company leverages innovations like cloud-to-device, data-to-generative AI to disrupt the traditional cybersecurity market. CrowdStrike emphasizes trust, platform adoption, and innovation, promoting widespread platform use through its Falcon Flex subscription model. This model allows clients to select services on demand, enhancing user retention and revenue stability.

In Q3 2025, CrowdStrike’s annual recurring revenue (ARR) exceeded 4 billion USD, with quarterly revenue surpassing 1 billion USD for the first time. These figures reflect strong market recognition of its transformation strategy. When facing a cybersecurity incident in July, the company quickly adjusted its AI-native architecture, further strengthening protection capabilities, demonstrating strong resilience and growth potential.

• In 2025, the Shanghai Stock Exchange introduced new regulations encouraging listed companies to use asset restructuring and innovative value-added strategies to enhance corporate value. These policies provide companies with more flexible capital operation space, prompting more firms to explore AI and blockchain applications.
• Listed companies actively respond to regulatory changes, adjusting business structures, optimizing asset allocation, and enhancing overall competitiveness.

These cases and policy changes indicate that only through continuous innovation and transformation can listed companies maintain a leading position in the new economy wave. AI and new technologies have become key factors in corporate value enhancement and capital market recognition.

Capital Market Environment

Policy Support

In 2025, Hong Kong’s capital market shows strong growth momentum. HKEX predicts that the full-year IPO fundraising amount is expected to exceed 25 billion USD (approximately 195 billion HKD, at 1 USD to 7.8 HKD), reaching a four-year high. The number of listed companies continues to grow, and market capitalization scales up. The Hong Kong government actively promotes financial infrastructure upgrades, introducing multiple regulatory innovation measures, including simplifying listing processes, strengthening review standards for tech companies, and encouraging high-growth companies to list in Hong Kong. These policies provide a more relaxed financing environment for tech and AI companies, attracting more innovative firms to the capital market.

Experts note that policy support not only boosts market confidence but also provides investors with more diverse options. As an international financial center, Hong Kong continues to optimize its regulatory framework, promoting healthy capital market development.

International Capital Flows

International capital shows strong interest in Chinese tech stocks. In 2025, the scale of foreign capital inflows into the Hong Kong market has significantly increased. According to HKEX data, the proportion of foreign ownership in Hong Kong listed companies reaches a historical high. Several international asset management firms increase allocations to new economy sectors like AI, cloud computing, and blockchain. These capital flows drive tech stock valuation increases, further solidifying Hong Kong’s position as Asia’s tech financing hub.

• International investors are optimistic about China’s technological innovation potential, actively participating in new share subscriptions.
• Hong Kong’s banking sector also strengthens cooperation with tech companies, launching tailored financial products to support corporate development.

This series of capital flows and policy innovations injects fresh vitality into Hong Kong’s capital market, supporting sustained tech industry growth.

Future Outlook

Investment Recommendations

AI and tech stocks will continue to lead listed company transformations. Multiple market data and expert opinions indicate that related technologies are rapidly penetrating various industries.

• In 2023, the virtual reality (VR), augmented reality (AR), and mixed reality (MR) market was valued at approximately 90.42 billion USD, expected to grow to 105.57 billion USD in 2024 and 304.29 billion USD by 2030.
• A CAGR of 18.92% reflects the broad application of AI and XR technologies, driving industry innovation.
• Several tech giants actively invest in XR technology development, accelerating industry integration through strategic partnerships and acquisitions.

Investors can focus on the following:

1. Continuously track industry applications and market size changes for AI, XR, and other new technologies.
2. Evaluate listed companies’ performance in technological innovation, capital operations, and international cooperation.
3. Refer to tech giants’ strategic moves to capture new industry opportunities.

Experts recommend that investors diversify asset allocations and focus on companies’ technological strength and transformation capabilities.

Risk Warnings

While AI and tech stocks have optimistic prospects, market volatility and technological disruptions bring potential risks.

• Intense industry competition and rapid technological updates may pressure some listed companies with product obsolescence.
• International policy changes and tightening regulatory environments may affect corporate valuations and capital flows.
• Strategic partnerships and acquisitions, while promoting industry integration, may bring integration risks and short-term financial pressures.

Investors should carefully assess corporate fundamentals, closely monitor market dynamics, and establish risk management mechanisms to address uncertainties.

The new economy and AI technology drive corporate transformation, bringing multifaceted, profound impacts:

1. AI-driven hyperautomation boosts productivity, with significant process automation acceleration in banking, healthcare, retail, and other industries.
2. The global AI market size continues to expand, with tech giants actively leading digital transformation.
3. Policy support and improved economic environments create more growth opportunities for tech stocks.

Market dynamics change rapidly, and companies and investors should proactively enhance competitiveness to seize new economy opportunities.

FAQ

What are new economy companies?

New economy companies are those centered on technology, digitalization, or innovative business models. These companies mostly focus on AI, cloud computing, blockchain, and similar fields.

How does AI drive listed company transformation?

AI helps companies improve operational efficiency, optimize decision-making processes, and reduce costs. Listed companies leveraging AI can adapt to market changes more quickly.

What are the main risks of investing in tech stocks?

Tech stocks are highly volatile, with rapid technological updates. Regulatory policy changes or shifts in international capital flows may impact stock performance.

How does Hong Kong’s capital market support tech companies?

The Hong Kong government and HKEX introduce multiple policies to simplify listing processes, enhance review efficiency, and encourage high-growth tech companies to list in Hong Kong.

How do international capital inflows affect Hong Kong tech stocks?

International capital inflows enhance market liquidity and drive up tech stock valuations. Foreign participation also promotes Hong Kong as Asia’s tech financing hub.

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