(Yicai Global) May 31 -- Thirty-nine Chinese businesses have filed to go public outside of the mainland in the two months since China's new regulations on offshore listings took effect.

Thirty-six of them applied to list on the Hong Kong Stock Exchange and three on New York’s Nasdaq Stock Market, according to the latest figures from the China Securities Regulatory Commission.

Under the new regulations came into effect on March 31, Chinese mainland firms that plan to go public offshore also need to submit registration materials to the CSRC.

The new regulatory regime’s influence on companies has been minor, as the number looking to list offshore is basically the same as before, Yue Yongping, a partner at Grandall Law Firm in Shanghai, told Yicai Global.

“Most of these companies plan to go public in Hong Kong, which shows that Hong Kong is becoming a more popular destination for domestic firms seeking offshore listings,” Yue said. The lower number of applications for US listings is partly the result of the new regulations requiring firms to submit documents to CSRC for approval, which wasn’t necessary in the past.

Companies are taking a wait and see attitude following the changes, resulting in fewer US listing applications in the past two months, but that may change in the future, Yue added.

Interested firms need to carry out in detail the requirements for listing, such as information disclosure and verification schemes, to ensure that everything is in order before submitting registration materials to the CSRC, Yue pointed out.

“It’s clear that the regulator still encourages firms to make full use of offshore market resources,” a legal expert in offshore listings told Yicai Global. “Successful listing cases are expected to appear soon, and by then we’re going to find that the new process is just a formality.”

So long as a company complies with the law and regulations, the new rules will not affect its offshore listing regardless of the market chosen, and the CSRC and other authorities will respect its choice and offer support, a CSRC official said in February when the draft rules were released.

Most of the 39 listing hopefuls that have submitted documents to the CSRC have been asked to submit supplementary materials, per the watchdog’s feedback, which focuses on important areas such as the authenticity of financial data, equity structure compliance, whether the companies funnel interests via stock ownership incentives, and personal information protection and data security.

Editors: Tang Shihua, Futura Costaglione