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Securities regulator to ease HK listings
By Lydia Chen |
August 18, 2011, Thursday
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Online Edition
Online Edition
CHINA'S top securities regulator is considering lowering financial thresholds to allow more mainland firms to go public in Hong Kong, according to the vice president of Guotai Jun'an Securities.
The remarks from Yan Feng, vice president of the Shanghai-based brokerage, came after Vice Premier Li Keqiang yesterday offered a package of measures to support Hong Kong's economy over the coming 8 years, including allowing more two-way investment in shares between the mainland and the special administrative region.
The visiting Li made it clear in his speech yesterday that China would continue to encourage more mainland firms to list in Hong Kong as part of the country's efforts to boost the region's reputation as a global financial hub at a time when its economy has slowed 0.5 percent in the second quarter.
Yan, who's also the head of Chinese Securities Association of Hong Kong, added that his company, along with many other mainland brokerages, hoped that the China Securities Regulatory Commission could align its listing standards to that of Hong Kong Exchanges and Clearing Limited.
Currently, under the requirements of the CSRC, mainland firms have to earn a net asset value of no less than 400 million yuan (US$62.5 million) while annual net profit should be at 60 million yuan at least in the past year.
Those who intend to list in Hong Kong should raise at least US$50 million.
However, standards set by the Hong Kong authorities are much easier. Companies are required to see their net profits above a total of HK$50 million (US$6.43) in the past three years while only HK$20 million of net profit is required for the previous year.
Total market value of the issued shares should be no less than HK$100 million.
The remarks from Yan Feng, vice president of the Shanghai-based brokerage, came after Vice Premier Li Keqiang yesterday offered a package of measures to support Hong Kong's economy over the coming 8 years, including allowing more two-way investment in shares between the mainland and the special administrative region.
The visiting Li made it clear in his speech yesterday that China would continue to encourage more mainland firms to list in Hong Kong as part of the country's efforts to boost the region's reputation as a global financial hub at a time when its economy has slowed 0.5 percent in the second quarter.
Yan, who's also the head of Chinese Securities Association of Hong Kong, added that his company, along with many other mainland brokerages, hoped that the China Securities Regulatory Commission could align its listing standards to that of Hong Kong Exchanges and Clearing Limited.
Currently, under the requirements of the CSRC, mainland firms have to earn a net asset value of no less than 400 million yuan (US$62.5 million) while annual net profit should be at 60 million yuan at least in the past year.
Those who intend to list in Hong Kong should raise at least US$50 million.
However, standards set by the Hong Kong authorities are much easier. Companies are required to see their net profits above a total of HK$50 million (US$6.43) in the past three years while only HK$20 million of net profit is required for the previous year.
Total market value of the issued shares should be no less than HK$100 million.
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