Panzhihua Iron & Steel (Pangang), to remove regulatory concerns regarding possible associated transactions, will include assets it originally excluded from its portfolio and will list as an integrated producer in Hong Kong, sources say.
Pangang had planned to exclude part of its downstream operations - including a new vanadium project - from the flotation, estimated to raise $2 billion next month.
The stock exchange was concerned that these assets, being closely linked with the listed concern, might give rise to associated transactions if they did not form part of the listed company.
The stock exchange has now passed the steel-maker's application following restructuring by the company to include those assets.
Pangang had been concerned that the vanadium project might not be sufficiently mature to be included in the portfolio, although it had strong upside potential.
Vanadium is a rare, silver-white metallic chemical element that increases the tensile strength of steel alloys.
The company is carrying on with its listing schedule despite the market's downturn, investors' lacklustre interest for H shares and disappointing earnings by steel-makers, sources said.