China market regulator to encourage Hong Kong listings

China plans to strengthen cross-border oversight and create institutional support for domestic companies seeking listings in Hong Kong, Business Recorder reported, citing China Securities Regulatory Commission Vice Chairman Li Chao. He made the remarks on Tuesday at Hong Kong’s Global Financial Leaders’ Investment Summit. The stated measures include support for listings as well as tougher action against fraud and cross-border capital activity.

The source also reported that Chinese shares rose following reports of regulatory support, while concerns about Huafa weighed on bonds. Li’s comments place Hong Kong listings and cross-border supervision at the centre of China’s stated market-regulation agenda. For investors, the news concerns the environment for Chinese companies pursuing Hong Kong listings and the regulator’s plans to address fraud and capital flows.