Chinese bubble tea giant Mixue sees a 47% surge on its debut amid rising investor demand.

      Mixue Group, a prominent bubble tea producer, experienced a 47% surge in share prices during its debut on the Hong Kong Stock Exchange on March 3, 2025, reaching a high of HKD 287 ($36.74) per share, bringing its market valuation close to $140.8 billion. The importance of this event lies in Mixue's significant opening, which demonstrates a strong interest from investors in China's affordable beverage market, even amid broader economic uncertainties. The listing reflects how consumer trends focused on cost-effectiveness are influencing China's food and beverage sector, benefiting various brands with widespread appeal.

      Throughout its 28-year existence, Mixue only secured one funding round prior to its IPO—a pre-IPO round in December 2020, which attracted over $290 million from investors such as Hillhouse Capital, Meituan Long-Z Investments, and CPE. On its debut, individual investors sought HKD 1.8 trillion ($230.8 billion) in margin financing for buying shares. Mixue's rapid revenue growth is linked to its competitively priced offerings, which cater to budget-conscious customers, with core products priced between RMB 2-8 ($0.28 to $1.11), significantly lower than competing brands in China's saturated beverages market.

      Recently, substantial capital has flowed into China's freshly made beverage industry, with several companies either already listed or planning to do so. Nayuki, ChaPanda, and Guming have completed their listings, while others, including Hey Tea, Auntea Jenny, Chagee, Chayan Yuese, and Tianlala, are preparing for IPOs. Mixue faced considerable challenges on its path to listing, having attempted unsuccessfully to enter China's A-share market in 2022 and Hong Kong's stock exchange in 2024. However, it finally achieved success this month with its Hong Kong debut.

      As of December 2024, Mixue operates over 46,000 stores worldwide, overtaking Starbucks to become the largest freshly prepared drinks chain in terms of store count. The company's listing in Hong Kong set new records, previously held by short-video platform Kuaishou, which raised HKD 1.5 trillion ($192.3 billion) in its 2021 IPO. Since then, Kuaishou's shares have decreased from their IPO price of HKD 115 ($14.74) to HKD 55 ($7.05) as of March 2025.