Startups shut out of US face tougher Hong Kong IPO rules

Stringent demand: The Exchange Square in Hong Kong. HKEX will raise the annual profit requirement for a main board listing. — AFP

HONG KONG: Chinese startups hungry for foreign capital are increasingly turning to Hong Kong as hurdles to list in the United States multiply. But not every firm will make the cut, and those that do might have to settle for lower valuations.

Hong Kong Exchanges and Clearing Ltd (HKEX) makes far more stringent demands on companies planning a listing than its New York peers.