SFC to ease Hong Kong listing conditions for firms linked to Belt and Road
Move comes after city’s stock exchange loses out to New York, Shanghai and Shenzhen in first quarter
Hong Kong’s Securities and Futures Commission says it is willing to be more flexible in approving “One Belt, One Road” initiative-linked companies to list on the main board, even if they do not meet certain criteria.
The city’s stock exchange is fighting hard to become a fund-raising centre for projects planned within the Beijing-led initiative, that are expected to require some US$8 trillion until 2020, the regulator said on on Tuesday.
A number of infrastructure companies have already expressed their interest with the commission to list in Hong Kong, according a source familiar with the situation, which has prompted the SFC to adopt a more liberal stance in the case of companies that could become involved in the hundreds of projects expected.
The same flexible approach is also likely to be used for some energy companies, it said, as Hong Kong fights it out with London and New York to host the Saudi Aramco initial public offering (IPO), which is expected to become the largest ever next year, valuing the oil giant at US$2 trillion.
Brokers believe the Hong Kong commission may also start to adopt a more flexible approach for technology firms to list in future too.
The SFC has stepped up its efforts at attracting new listings after Hong Kong lost out to New York, Shanghai and Shenzhen’s ChiNext in the first quarter of this year on the value of funds raised via IPO.
The city has ranked top IPO market worldwide for the past two years but a lack of blockbuster flotations in the first quarter, and particularly a dearth of technology firms seeking to list here, has pushed the city into fourth place worldwide.