China Clamps Down on Key Route to Hong Kong IPOs After Boom (1)

Beijing is restricting Chinese companies incorporated overseas from seeking initial public offerings in Hong Kong, according to people familiar with the matter, threatening to upend a decades-old playbook that has fueled billions of dollars in share sales.

While stopping short of an outright ban, regulators have recently discouraged IPO applications from so-called red-chip firms — entities registered outside China but which hold assets and businesses within it, said the people, who asked not to be identified discussing private matters. Some companies have already been asked by the Chinese securities regulator to overhaul their structure before proceeding with Hong Kong listings. ...