Subtle Word Choice in China IPO Rules Revives Hope for Hong Kong

Internet regulator specifies ‘foreign’ share sales as requiring special vetting, changing the word from ‘overseas’ in draft regulations

(Bloomberg) — A subtle word choice in China’s revamped rules for overseas share sales is stoking speculation that authorities may make it easier for companies to raise capital in Hong Kong than in other offshore financial hubs.

Under final regulations published Tuesday, China’s top internet regulator

requires all companies with more than 1 million users seeking “foreign” listings to undergo a rigorous data security review starting Feb. 15. That’s a notable change from a related November notice. In that document, the same watchdog mentioned Hong Kong share sales specifically as requiring scrutiny if they involved matters of national security and employed the term “overseas” — often used to describe Hong Kong, a semi-autonomous Chinese city.