* CSRC requires some 'red-chip' firms to change domicile

to China before IPOs

* Regulator cites opaque structure, high risk as main

concerns

* Structure formed after new listing rules targeted

March 17 (Reuters) - Beijing is restricting certain

Chinese companies incorporated overseas from seeking initial

public offerings in Hong Kong, requesting them to change their

domicile back to China before going public, according to China's

securities regulator.

The China Securities Regulatory Commission (CSRC) said on

Tuesday some red-chip firms, companies that are registered

abroad, but hold assets and businesses in China via equity

ownership, received the guidance to unwind the structure

recently.

"Regulators at home and abroad have long scrutinised

red-chip vehicles given their opaque shareholding structures and

relatively high compliance risks," the CSRC said in a statement

responding to Reuters queries.

Sources with knowledge of the matter told Reuters earlier on

Tuesday that the CSRC had requested a number of IPO candidates

in recent days that they should not list in Hong Kong unless

they overhaul their corporate structure.

It was not immediately clear how many IPO candidates have

received such guidance.

The CSRC said it has since December allowed five red-chip

companies to complete their filings in order to list offshore.

FOCUS ON RED CHIPS FORMED SINCE NEW RULES

The securities regulator has since March 2023 implemented a

new filing regime under which companies which adopted complex

holding structures such as red chips are subject to Beijing's

approval to raise funds offshore.

"Under the new regime, authorities typically examine the

necessity and compliance of establishing red-chip structures,

particularly whether such structures were built after the

measures took effect," the CSRC said in the statement, referring

to the new offshore listing rules.

Currently, more than 530 companies have filed applications

for a Hong Kong listing, according to the exchange's website.

The CSRC, which said the guidance to unwind red-chip

structures was a standard regulatory move, added it had

consistently supported enterprises in lawfully listing in Hong

Kong and other offshore markets.

The Hong Kong stock exchange declined to comment.

Bloomberg News first reported on Tuesday the restrictions,

citing people familiar with the matter.

The tightening measures contrast with Hong Kong's latest

proposal to lower market value thresholds for companies seeking

to use a dual-class share structure, among other new measures to

boost its competitiveness.

Hong Kong was the top global IPO market last year. Chinese

companies accounted for 77% of its total market capitalisation

at the end of 2025, exchange data shows.