At the same time, although Alibaba Group Holding Ltd abandoned Hong Kong for New York in March, it still shadows IPO activities on the other side of the globe. "Such a high-profile debut is certainly eye-catching for all global investors. No other big issuance would want to overlap its schedule and compete for the limelight," Dai said.

After filing its prospectus with the US Securities and Exchange Commission in May, the e-commerce giant is expected to stage the grandest offering ever seen and raise some $20 billion.

Shanghai-HK link set to boost arbitrage gains for investors

Second batch of IPO applications waiting approvals

"But for companies eyeing less ambitious goals in the Hong Kong equity market, there's still a chance," Dai said. "It's worth trying."

And a vast number of entrepreneurs are champing at the bit for the opportunity. As structural reform unfolds on the Chinese mainland, more sectors are being opened to private enterprises, which are often small or medium-sized companies.

"Chinese SMEs are eager to expand. They are crying out for funds," said Edward Au, co-leader of national public offering group of Deloitte Touche Tohmatsu Ltd. "However, at this stage, the capital market on the mainland can hardly provide an instant solution. That squeezes them overseas, where Hong Kong is obviously the first choice."

Resuming IPO activities in the A-share market this year, the China Securities Regulatory Commission said in May that it would green light about 100 companies seeking listings in the second half of 2014. But, according to a statement the commission released on July 1, as many as 637 applications are piling up.

"As concerns about a hard landing in China ease, and low interest rates globally are expected to remain, investor confidence is picking up in Hong Kong, a market under the influence of both the China and US economy," Au said.

On June 18, the US Federal Reserve decided to keep the federal funds rate under 0.25 percent "for a considerable time" after tapering terminates, which is estimated to occur at year's end. The move is expected to help maintain global liquidity. Separately, the latest HSBC Holdings Plc's China Purchasing Managers Index also stood at 50.7 on July 1-returning to expansion territory for the first time this year. The PMI of the National Bureau of Statistics has climbed for a fourth consecutive month, reaching 51-a half-year high.