HONG KONG - Investment banks preparing Hong Kong IPO applications have been asked to make sure their submissions are up to standard, the city's securities regulator and the stock exchange operator said.

Regulators believe that a surge in listings in the city had led to some banks working on multiple IPOs simultaneously, resulting in unsatisfactory work on some applications, two sources with knowledge of the matter said.

The warning was issued last Friday, added the sources, who were not authorized to speak to media and declined to be identified.

Asked to comment on the information from the sources, Hong Kong Exchanges and Clearing Ltd (HKEX) said it was "committed to ensuring the timely and robust review of new listing applications."

The exchange continues to engage with issuers, sponsors and professional advisers to "ensure the submission of comprehensive and high‑quality listing materials", a spokesperson said in an emailed statement.

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The Securities and Futures Commission in a separate statement said that both it and HKEX welcome "quality companies" seeking listing in Hong Kong and support a vibrant capital markets ecosystem.

Hong Kong dominated Asian equity capital market deals with $75 billion raised so far this year, more than triple what was raised last year and the highest since 2021, according to LSEG data.