Shares in a Chinese bubble tea chain with more outlets than Starbucks and McDonald’s soared in their debut on the Hong Kong Stock Exchange. Mixue Ice Cream and Tea has more than 45,000 shops across China and 11 other countries, and raised £352million in an initial public offering on Monday.

Shares in the company increased by more than 47% after 17million were sold at a fixed price of £20.59. China is facing some economic difficulties and Mixue’s affordable prices, reportedly selling ice creams and drinks for an average of six Chinese yuan (£0.65), makes it a popular option for many. Ernan Cui, a Beijing-based analyst for research firm Gavekal Dragonomics, told the Wall Street Journal that the chain is becoming increasingly popular as “people are chasing more cost-efficient products”.

Longdley Zephirin, principal and analyst at The Zephirin Group, said the company’s debut on the Hong Kong Stock Exchange shows “investors are warming up to the bubble tea market again”.

The global bubble tea market has been valued by analysts at more than £2billion in 2024 and is expected to grow to almost £3.8billion by 2032.

Mixue was founded in 1997 by Zhang Hongchao after opening a shaved ice stall in central China.

The chain has a recognisable mascot, Snow King, and a catchy theme tune which plays on a loop in its stores.

Almost all of Mixue’s outlets are run by franchises. 

Despite already having more stores than US giants McDonald’s (more than 43,000) and Starbucks (around 40,000), the company says it has plans to continue expanding.

Most of Mixue’s outlets are in mainland China but there are also stores in countries including Indonesia, Vietnam, Malaysia, South Korea and Australia.

Bubble tea, which originates from Taiwan, has become an increasingly common sight on British high streets in recent years.

It is a cold drink typically made out of black tea, milk, sugar and the famous bubbles which are tapioca pearls.