Hong Kong's Securities and Futures Commission initiated its review of the margin financing of eight brokerages after some initial public offerings have been heavily oversubscribed, the South China Morning Post reported Friday, citing SFC Chief Executive Julia Leung Fung-yee.

Leung did not name the firms that are being investigated, the SCMP said.

Leung said the SFC will check whether their risk management is prudent, the firms' policies are sound, or consider the repayment ability of customers, among other parameters, the report said.

Margin financing is the provision of loans by brokerages to purchase stocks, the report said.

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