China may ease criteria for HK IPOs

China’s securities authority plans to lower current profit requirements for mainland companies conducting initial public offerings (IPOs) in Hong Kong, in a bid to increase financing channels for the domestic market, South China Morning Post reported, citing a report from China Securities Journal on Monday. China Securities Regulatory Commission (CSRC) Chairman Guo Shuqing and Hong Kong authorities both indicated a wish to lower the profit bar after holding discussions on the matter. The CSRC may expedite approvals for mainland companies who wish to go public in Hong Kong, two sources said. Beijing likely intends to divert credit-hungry companies out of the mainland after halting domestic market flotations in October to help maintain stock market value, a ban which analysts expect to last through the Lunar New Year in February. Any change to the criteria for listing will be subject to central government approval.