HKEx pushes ahead with weighted voting rights

Author: Karry Lai | Published: 15 Jan 2018

The Hong Kong Stock Exchange (HKEX) is dramatically changing its listing rules to allow for weighted voting rights and the listing of pre-profit/pre-revenue companies in the biotech industry. A formal consultation on the proposed rule amendments can be expected in the first quarter of 2018.

The debate over whether Hong Kong’s stock exchange should allow for weighted voting rights and more flexibility for new economy companies has been brewing since Chinese internet commerce giant Alibaba opted for the New York Stock Exchange (NYSE) for its initial public offering back in 2014. Founder Jack Ma said last week that Alibaba will also consider listing in Hong Kong.

Industries such as technology have favoured dual class shares as certain classes of shareholders such as executives can be given more voting power than others. Compared to the 47% of new economy companies on the NYSE, only three percent choose to...


 

 

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