(Yicai Global) April 12 -- The Securities and Futures Commission of Hong Kong (SFC) has issued a statement clarifying guidelines for mainland Chinese companies which want to be involved in the 'Belt and Road' initiative and seek a Hong Kong listing.
Despite the risks related to infrastructure project companies, if there are sufficient risk mitigation factors, the SFC will take this into account when reviewing their proposed listing, the regulator said in a statement issued yesterday.
Companies in which a mainland state-owned enterprise, sovereign wealth fund, substantial listed company or substantial and globally-active institutional investor has a large shareholding are more likely to get approval on their listing applications, the SFC said.
Applications from companies for which a sizable mainland, development or international bank has committed to providing ongoing finance, as well as the ones in which the government of the country where the project assets are located is directly involved or holds a stake are also more likely to be approved.
The SFC demanded that the infrastructure project companies who want to take part in Belt and Road projects make detailed disclosure about potential risks involved when they apply for a listing in Hong Kong.