Chinese start-ups hungry for foreign capital are increasingly turning to Hong Kong as hurdles to list in the US multiply. But not every firm will make the cut, and those that do might have to settle for lower valuations.

Hong Kong Exchanges and Clearing Ltd makes far more stringent demands on companies planning a listing than its New York peers. Firms likely to struggle include unprofitable start-ups with little revenue such as those developing autonomous driving cars, or companies in industries including ride-hailing, which operate in a legal grey zone.

Bloomberg