China’s offshore listing rules seen easing market uncertainty

In Hong Kong, the value of initial public offerings (IPOs) in 2021 fell to US$26.7bil (RM112bil) from the previous year’s US$32.1bil (RM135bil), according to Refinitiv data. Reaction to the new rules will be seen today when the US stock market resumes trade after closing last Friday for the Christmas holiday. Hong Kong stocks will resume trading tomorrow.

HONG KONG: China’s plan to tighten scrutiny over mainland companies’ overseas share sales is likely to ease the regulatory uncertainty that roiled financial markets this year and stalled offshore listings, according to bankers and analysts.

But the securities regulator’s new filing-based system, designed to rein in once freewheeling Chinese listings in the US market and elsewhere, leaves open questions about rule enforcement and compliance criteria, according to them.