The robust capital flow to the Hong Kong capital market, which has gained some 60 percent in past several months, has offered an attractive funding option to mainland enterprises, particularly banks, at a time when the ban on new share issues on the mainland is yet to be lifted.

The lending spree in the past few months has required some mainland banks to boost their capital adequacy ratios, thereby constricting their loan growth.

The first mainland bank to come calling for new capital could be China Minsheng Banking Corp Ltd, which indicated earlier that it has initiated the process for an initial public offering (IPO) in Hong Kong.