The US initial public offering of FWD Group has hit a potential regulatory roadblock, according to the South China Morning Post (SCMP).
This comes several weeks after the Hong Kong-based insurer confirmed its plans to raise as much as $3bn (£2.2bn, €2.6bn) in the States.
The insurer has yet to receive final approval from the Securities and Exchange Commission (SEC), and the media report stated that the US watchdog is asking about potential risks associated with the Chinese government extending its authority over Hong Kong-based firms.
SCMP said that FWD has not withdrawn its IPO, but it is unlikely the listing will be completed before the end of the year.
FWD Group told International Adviser: “We do not comment on market rumour or speculation. We continue to work closely with the US.Securities and Exchange Commission to obtain their final approval for our proposed initial public offering.”
The listing by FWD would be the biggest US flotation ever by a Hong Kong-based insurer. It would be the largest by an insurer based in China or Hong Kong since China Life Insurance raised $3.5bn from its IPO in December 2003.