Mainland firms may see easier HK listing
By Lydia Chen |
August 19, 2011, Friday
|
Print Edition
Print Edition
CHINA'S top securities regulator may lower its threshold to allow more mainland firms to list in Hong Kong, a senior industry official said yesterday.
Yan Feng, vice president of Guotai Junan Securities, made the remark after Vice Premier Li Keqiang offered the biggest package of measures in more than eight years by the central government to support Hong Kong's economy, including allowing more two-way investments in shares.
Li pledged in his speech that China will continue to encourage more mainland firms to list in the city.
Yan, who's also the head of the Chinese Securities Association of Hong Kong, added that mainland brokerages hoped the China Securities Regulatory Commission could bring its listing standards to those of the Hong Kong Exchanges and Clearing Ltd.
Under the CSRC requirements, mainland firms must have a net asset value - the value of an entity's assets less the value of its liabilities - of not less than 400 million yuan (US$62.5 million) while annual net profit should be at least 60 million yuan in the past year. Entities which seek to list in Hong Kong should raise at least US$50 million from initial public offerings.
The conditions set by the Hong Kong authorities are less stringent. Companies need a combined net profit above HK$50 million (US$6.41 million) in the past three years. They only need to earn HK$20 million in net profit for the previous year. The total market value of issued shares should be not less than HK$100 million.
Yan Feng, vice president of Guotai Junan Securities, made the remark after Vice Premier Li Keqiang offered the biggest package of measures in more than eight years by the central government to support Hong Kong's economy, including allowing more two-way investments in shares.
Li pledged in his speech that China will continue to encourage more mainland firms to list in the city.
Yan, who's also the head of the Chinese Securities Association of Hong Kong, added that mainland brokerages hoped the China Securities Regulatory Commission could bring its listing standards to those of the Hong Kong Exchanges and Clearing Ltd.
Under the CSRC requirements, mainland firms must have a net asset value - the value of an entity's assets less the value of its liabilities - of not less than 400 million yuan (US$62.5 million) while annual net profit should be at least 60 million yuan in the past year. Entities which seek to list in Hong Kong should raise at least US$50 million from initial public offerings.
The conditions set by the Hong Kong authorities are less stringent. Companies need a combined net profit above HK$50 million (US$6.41 million) in the past three years. They only need to earn HK$20 million in net profit for the previous year. The total market value of issued shares should be not less than HK$100 million.
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