Mainland developers raised more than 10 billion yuan ($1.6 billion) in the overseas market in October and at least five of them are seeking to use initial public offerings to raise more than $2 billion and be listed on the Hong Kong Stock Exchange by the end of 2012. 

 

The China Securities Regulatory Commission, as part of the government's effort to cool the overheated property market, has not approved a property developer's plan for a listing on the Chinese mainland's A-share market since 2007. 

 

Many investors have said the large number of IPOs seen in the past drained away investment capital and drove the stock market into the doldrums. 

 

With the freeze on approvals, many cash-starved property companies have turned to other markets to raise capital. The greater enthusiasm for listing in Hong Kong has in large part been "stoked by mainland regulators' comments about lowering the requirements for mainland companies that are seeking a Hong Kong listing", said Wang Jianhui, chief economist with Southwest Securities Co Ltd. 

 

According to current regulations, mainland developers must have a minimum of 400 million yuan in net assets and 60 million yuan in annual net profits to be listed in Hong Kong. They also must be capable of raising a minimum of 50 million yuan. 

 

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