Beijing's recent decision to ease listing rules for H-share and B-share companies has revived hope for the cash-strapped firms, which have been struggling recently because of sliding stock prices.
The China Securities Regulatory Commission (CSRC) early last week said it would allow H-share and B-share companies to issue A shares without going through the cumbersome process of seeking clearance from Beijing.
Industry analysts said the measure reflected another government attempt to further boost the H-share sector, which saw a revival last week thanks to the good performance of the economy.
'As Chinese banks are busy sorting out their own bad loan problems, the stock market is left as the only resort for financing for Chinese enterprises,' Morgan Stanley Dean Witter chief economist Andy Xie said.
'The majority of H- and B-share companies are old economy stocks and relatively small plays,' Mr Xie said. Investors shunned such firms, preferring new economy stocks and single-industry firms such as China Mobile and Legend Holdings.
The bearish attitude towards H shares until recently has left their prices languishing below initial public offering levels and net asset values - the minimum price Beijing sets for mainland companies to sell shares.