China considers tightening standards for mainland firms seeking Hong Kong listing, Bloomberg says

China’s securities regulator is considering tightening vetting standards for mainland companies seeking listings in Hong Kong, in response to concerns over deal quality amid the recent offshore fundraising boom, Bloomberg reported, citing people familiar with the matter.

The authorities are said to be looking to raise regulatory and compliance thresholds, including setting a minimum market-capitalization requirement, the report said. 

The proposals are still under discussion and no final decision has been made. 

Some mainland brokerages have reportedly received guidance that Chinese companies seeking dual listings in Hong Kong should have a market value of at least 30 billion yuan, it said.

This would mean smaller firms may find it difficult to secure approval from the China Securities Regulatory Commission (CSRC).