Hong Kong to ease IPO rules for mainland Chinese firms in boost for global ambitions

Hong Kong’s financial regulators have pledged to ease listing requirements for mainland Chinese companies, as they eye the city’s stock market as a source of funding to support their global ambitions.

The market watchdog and the bourse operator would propose revisions later this year, aiming to lower the fundraising threshold, optimise market structure and improve corporate governance, Hui said at a conference in Shenzhen.

The regulators “are conducting comprehensive studies and will unveil proposed measures to improve the existing [fundraising] system within this year,” he said at a meeting of the Shenzhen-Hong Kong Financial Cooperation Committee. “We hope to further facilitate mainland companies, including firms in Shenzhen, to raise capital.”

Hui’s statement is expected to spark enthusiasm among mainland firms for initial public offerings (IPOs) in Hong Kong as they pursue fresh capital to power their expansion.