China regulator vows to back Hong Kong listings, fight cross-border fraud
China’s market regulator said on Tuesday it would deepen cross-border regulation and create an institutional environment to support mainland firms listing in Hong Kong. Vice Chairman Li Chao also pledged to crack down on fraud and illicit cross-border capital flows.
China will deepen cross-border regulation and provide an institutional environment to support the listing of domestic companies in Hong Kong, Li Chao, vice chairman of China’s market regulator, said on Tuesday.
Li, vice chairman of the China Securities Regulatory Commission, made the remarks at Hong Kong’s Global Financial Leaders’ Investment Summit. He said the regulator would crack down on fraud and cross-border capital activities.
The pledge signals Beijing’s continued willingness to use Hong Kong as a listing venue for mainland firms, even as it tightens oversight of cross-border financial flows. The regulator did not provide a timeline or specific measures.
Hong Kong has long been the primary offshore listing destination for Chinese companies, with hundreds of mainland firms raising capital on the city’s stock exchange. The latest commitment comes as Hong Kong seeks to reinforce its role as an international financial hub.
Analysts say the regulator’s statement could reassure investors worried about recent regulatory crackdowns in China. However, they note that implementation will be key to determining whether the promised institutional environment materialises.