China weighs tighter rules for firms to list in HK

Concerns over deal quality could lead to a minimum market capitalisation limit

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China’s securities regulator is considering tightening the criteria for mainland companies to sell shares in Hong Kong, after an offshore fundraising boom raised concerns over deal quality, people familiar with the matter said.

The China Securities Regulatory Commission (CSRC) has been deliberating on raising regulatory and compliance thresholds for companies pursuing so-called H-share listings, the sources said, asking not to be named as the matter is private.

One potential measure would be to set a minimum market capitalisation limit, according to the sources. Publicly traded Chinese companies seeking a dual listing in Hong Kong are also facing more scrutiny.

The proposals remain under discussion, with no final decision yet reached, the sources said. They reflect a broader effort by Beijing to support the capital markets and the economy while curbing excess speculation and ensuring high-quality offshore issuers. The CSRC did not immediately respond to a request for a comment.

One Chinese brokerage was guided to set the market value threshold at 30 billion yuan (S$5.5 billion) for companies in China seeking dual listings in Hong Kong, as smaller ones might fail to get registry approval by the CSRC, a person familiar with the matter said. Chinese brokers such as China International Capital Corp (CICC) and Citic Securities are among the leaders in arranging initial public offerings (IPOs) in Hong Kong.

The move would cool a frenzy in Hong Kong’s equity fundraising market, which is helping the city’s overall economy to emerge from a protracted slump. Hong Kong was the global leader in share sales in 2025, largely driven by a surge in fund raising by mainland Chinese companies, including a US$5.26 billion (S$6.7 billion) deal by Contemporary Amperex Technology, or CATL.