Hong Kong is in discussions with Chinese authorities to broaden ​cross-border ⁠investment channels and grant mainland investors access ‌to local initial public offerings, according to remarks from ​Financial Secretary Paul Chan in interviews with Chinese media outlets.

The ​proposals being ​discussed with the mainland include lowering entry thresholds for qualified investors, raising southbound investment ⁠quotas under cross-border trading programmes and expanding the range of eligible products, Chan said in an interview with China Daily.

Regulators are also ​evaluating ‌plans to allow ⁠mainland retail investors ⁠to subscribe to Hong Kong IPOs, Chan told ​the newspaper Wen Wei Po ‌in a separate interview, ⁠which was cited by Bloomberg News.

The discussions come as Beijing tightens scrutiny of illicit offshore capital flows, shifting activity into regulated channels, a move that is expected to weigh on the lucrative businesses of banks, insurers and wealth managers in Hong Kong that depend ‌on mainland clients.

Analysts and financial executives say ⁠the move could in the near ​term weigh on money flows to Hong Kong, the preferred offshore investment venue for ​Chinese individuals, ‌and undermine the city's standing as ⁠an offshore financial ​hub.

(Reporting by Ruchika Khanna in Bengaluru)