(Yicai) March 3 -- The number of Chinese mainland firms that applied to list in Hong Kong in the first two months of this year was three times greater than it was a year ago, spurred by stricter oversight of mainland public offerings and favorable policies in the special administrative region.

Forty-one mainland companies filed for share sales on the Hong Kong Stock Exchange in January and February, 12 of which are already publicly traded on mainland bourses, according to data from Wind Information.

Mainland regulators have toughened the listing requirements last year, so only those companies that meet the more rigorous standards can get approval. As a result, many firms that planned to float on the so-called A-share market pulled their filings, triggering repurchase pressure under valuation adjustment mechanisms. Hong Kong’s H-share market then presented an alternative listing avenue.

The growing enthusiasm for ‘A+H’ listings stems not only from the business development and financing needs of companies, but also from policy support, Hu Yu, chief economist of Xinding Fund, told Yicai. Financing needs may be the primary reason, he noted.

Last April, China’s securities watchdog unveiled five measures to enhance cooperation with the Hong Kong market, including supporting mainland industry leaders to list there.

Then in October, Hong Kong’s securities regulator and stock exchange jointly announced improvements to the listing process in the SAR, setting up a fast-track channel for mainland-listed firms with an expected market cap of not less than HKD10 billion (USD1.3 billion).

In addition, the spin-off listing plans of many companies have also shifted to Hong Kong. Chinese regulators demanded stricter supervision of spin-off listings last year, with 24 such share offerings being terminated since then, Wind data showed.

Dual listings help Chinese companies leverage capital markets to enhance their global competitiveness and provide investors with more choices, according to Ernst & Young.

Editor: Martin Kadiev