Chinese teahouse chain Chagee is said to explore Hong Kong listing

Chinese tea chain Chagee Holdings is considering a listing in Hong Kong, according to sources familiar with the matter, joining a rush of firms being drawn to sell shares in the Asian financial hub.

Chagee is in initial talks with banks about a share sale that may raise several hundred million US dollars, possibly this year, the sources said, asking not to be identified discussing confidential information.

The company already trades in the US, where its initial public offering last year turned chief executive officer Zhang Junjie, aged 30 at the time, into a billionaire.

Deliberations are ongoing and Chagee may decide not to proceed with a share sale in Hong Kong, the sources said. Regulatory approval is also still needed.

Chagee did not respond to requests for comment.

Founded in 2017 in China’s southwest Yunnan province, Chagee specialises in premium, milk-based teas using traditional Chinese blends. It had a network of 7,338 teahouses as at the end of September, primarily in China.

Chagee’s US shares have fallen more than 50 per cent since its April 2025 listing, leaving the company with a market value of about US$2.5 billion.

Revenue declined 9.4 per cent from a year earlier in the third quarter to about US$450 million, while net income slid by more than 35 per cent amid low-price competition from Chinese food delivery platforms, Chagee’s quarterly report shows.

After a strong 2025, Hong Kong is on course for its best January on record for new listings, with 11 companies already poised to raise as much as US$4.1 billion. Unlike Chagee, much of the lineup consists of Chinese firms tied to artificial intelligence.

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