HK's capital-raising role under increasing threat

Changes in rules on mainland, US advantages erode city's position

Deregulation on the mainland poses a rising threat to Hong Kong's role as a source of capital for Chinese enterprises next year, according to stock analysts and investment bankers.

Proposed changes in listing rules will greatly enhance the competitiveness of the exchanges in Shanghai and Shenzhen against Hong Kong. But the biggest challenge to Hong Kong's position as a major market for the lucrative Chinese initial public offering business is likely to come from New York.