The IPO comes at a time when gold prices have gained nearly 39% this year.
The IPO occurs amid rising gold prices, which have increased nearly 39% this year, typically supported by low interest rates and market uncertainty. The offering surpasses the recent $1.2 billion IPO by Chinese automaker Chery, making it the largest Hong Kong listing of 2025. Mainland-listed companies have continued to support activity in Hong Kong’s market through share sales.
Zijin Gold manages all of Zijin Mining’s overseas gold operations. According to its prospectus, the company plans to use IPO proceeds over the next five years to upgrade and build mines, aiming to enhance production capacity. Cornerstone investors have committed approximately $1.6 billion in shares, including Singapore’s wealth fund GIC and private equity firm Hillhouse, each purchasing $150 million, while asset managers BlackRock and Schroders will acquire $120 million each. Morgan Stanley and CITIC Securities serve as joint sponsors of the offering.
Zijin Mining stated that the spin-off and independent listing of Zijin Gold will diversify financing channels and improve overall financing efficiency, according to EconoTimes. The IPO also supports the company’s global expansion strategy. In June, Zijin Mining agreed to acquire the Raygorodok gold mine in Kazakhstan for $1.2 billion, further strengthening its international gold portfolio.
The Hong Kong listing of Zijin Gold underscores both the city’s role as a capital-raising hub for mainland companies and the growing investor interest in gold amid market volatility. The company’s plans for mine expansion and upgrades reflect a strategic approach to securing long-term production capacity while leveraging favorable market conditions.
By attracting major institutional investors and establishing a strong cornerstone base, Zijin Gold positions itself to enhance production capabilities, expand operations, and maintain financial stability. The IPO also highlights the increasing use of Hong Kong as a platform for large-scale listings by overseas-focused Chinese subsidiaries, reinforcing the city’s importance in global capital markets.
