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HKEX Falters After Midday as CN Regulators Reportedly Intend to Restrict Red-Chip Firms from Listing in HK
Recommend 8 Positive 12 Negative 13 |
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HKEX (00388.HK) trended downward after midday. It last traded at HKD404.6, down 0.39%, with a volume of 3.4206 million shares, involving HKD1.397 billion. Chinese regulators have recently advised several companies planning to go public to dismantle their red-chip structures and use domestic entities to seek listings in Hong Kong, Bloomberg reported, citing sources. In other words, these companies will have to complete the overseas listing filing procedures with the China Securities Regulatory Commission before listing in Hong Kong. The red-chip structure is a common model for Chinese state-owned and private enterprises to list in Hong Kong. Under this structure, the issuer is a holding company established overseas, but its main business or assets stay in mainland China. It is said that the Chinese regulators aim to curb capital outflow with the new arrangements. AAStocks Financial News |
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