Mainland firms cash in on Hong Kong IPOs (2)

Enterprises that are in dire need of raising money to pay for expansion plans are also concerned about the length of time it takes to have an IPO approved on the mainland, Ma said.

The China Securities Regulatory Commission, the securities watchdog, has not approved a new issuance since October.

More than 800 enterprises in the mainland are now waiting for the regulator to approve their IPO applications so they can be listed in Shenzhen or Shanghai. If the average number of enterprises that have received approvals in past years is any indication, they may be kept on hold for another five years.

The looser requirements that apply to mainland companies seeking to go public overseas also appeal to Chinese enterprises, Ma said.

Among the enterprises that went public in Hong Kong in 2012 were People's Insurance Company Ltd (Group) of China, one of the world's largest insurers measured by premium income, which raised about HK$24 billion on Dec 7 in the biggest IPO in Hong Kong so far in 2012.