Exclusive-China regulators tell banks to expedite offshore company listings, sources say

By Selena Li, Scott Murdoch, Julie Zhu and Kane Wu

SYDNEY/HONG KONG (Reuters) - 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.

The China Securities Regulatory Commission (CSRC) in October told two meetings, attended by a total of more than 10 banks and law firms, it was working towards speeding up some approvals for offshore listings, seven sources said.

Bankers from JPMorgan, Morgan Stanley, Goldman Sachs, UBS and Chinese firms CICC and Huatai Securities, among others, attended the meetings, according to the sources.

In a similar move, Hong Kong's bourse operator has also initiated one-on-one meetings with major global and Chinese banks since October to discuss how to optimise the listing process for Chinese firms, two of the sources said.

The closed-door meetings and their details, which have not been reported previously, mark a strategic change for China after it framed rules for offshore fundraisings in March 2023, tightening scrutiny in a move that contributed to the sharp slowdown in offshore capital raisings over the last three years.

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.

The CSRC did not respond to a Reuters request for comment.

Goldman, Morgan Stanley and UBS declined to comment, while other banks did not respond to requests for comments.

All sources, who have knowledge of the matter, declined to be named as they were not authorised to speak to the media.

While CSRC officials did not specify any particular venue for speeding up offshore listings in the two meetings, Hong Kong is the preferred offshore fundraising destination for Chinese companies and grabs a bigger share than New York.

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.

A rebound in initial public offerings (IPOs) in Hong Kong will also tie in with Chinese policymakers' recent public show of support to the city which has reeled from pro-democracy protests, a talent exodus and an economic slowdown in recent years.

"We welcome the listing of quality companies from Mainland China and around (the) world," Hong Kong Exchanges and Clearing Ltd said in a statement, adding it has around 90 active listing applications in the pipeline.

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