Hong Kong is set to shelve its ban on weighted
voting rights to attract new economy
The fast-growing new economy companies in China, which
prefer to adopt a weighted voting right (WVR) structure, face
restrictions in listing their equity securities in China. When
these companies have advanced to a stage that requires large
scale capital fundraisings, listing their equity securities
outside of China becomes an attractive option for them.
Historically, however, these companies must either abolish
their WVR structures in order to be eligible to list their
equity securities in Hong Kong, or (for those who refuse to
compromise on the founders' control over the company), choose
other listing venues such as those in the US....