China Securities Journal, 12/17/12
The China Securities Regulatory Commission (CSRC) will soon open discussion on a proposal to loosen the requirements for Chinese companies to list on the Hong Kong Stock Exchange. The CSRC plans to announce specific details on the proposed changes shortly.
According to CSRC Chairman Guo Shuqing, the CSRC is currently reviewing the capital and IPO scale requirements to list in Hong Kong with related Hong Kong agencies.
According to current CSRC regulations, Chinese companies wishing to list in Hong Kong are required to have minimum net asset value of RMB 400 mln, a yearly net profit of no less than RMB 60 mln, and raise a minimum of USD 50 mln through their IPO. These restrictions have traditionally prevented the majority of Chinese small-to-medium enterprises from raising capital on foreign stock exchanges.