SYDNEY/HONG KONG - Regulators in mainland China and Hong Kong have told some of the world's biggest investment banks to help speed up Chinese companies' listings in the city, said sources, in a bid to boost fundraising overseas and revitalise the world's No. 2 economy.
An unprecedented regulatory crackdown on the country's marquee private enterprises, volatile markets, an economic slowdown and geopolitical tensions also squeezed Chinese companies' overseas fundraisings.Goldman, Morgan Stanley and UBS declined to comment, while other banks did not respond to requests for comments.
A pickup in listings would come as a boost to Hong Kong as some Chinese companies are expected to avoid fundraisings in the U.S. amid worries of worsening geopolitical tensions under President-elect Donald Trump. The intermediaries were told at the meetings that CSRC's goal is to not flood the market with new approvals, but to facilitate some"successful cases" of high-profile deals that can boost market sentiment, said the two sources.
During the meetings with investment bankers in Hong Kong in October, the city exchange officials urged them to identify bottlenecks in the listing application process of Chinese firms and share specific examples, two of the sources said. The Hong Kong exchange in October shortened the time spent by the bourse and the city's securities regulator on giving feedback for such listing applications.