HKeX to consult on ‘new board’ for dual-class shares

HONG KONG: The Hong Kong stock exchange will begin a public discussion next month over whether to establish a trading board for young companies and firms with non-standard share structures, said the bourse’s chief executive officer (CEO) yesterday.

The discussion comes amid general debate about Hong Kong’s corporate governance rules and attractiveness as a listing destination, sparked by Alibaba Group Holding Ltd favouring New York over Hong Kong for its record US$25 billion (RM106.71 billion) initial public offering (IPO) in 2014.

Hong Kong was the world’s biggest IPO venue last year but has struggled to attract technology and so-called new economy companies due to its profitability requirements and ban on weighted voting rights, which many tech firms prefer.

Speaking at Hong Kong Venture Capital Association China Private Equity Summit, Charles Li, CEO of Hong Kong Exchanges and Clearing Ltd (HKeX), said the “New Board” would complement the main board and Growth Enterprise Market, and allow the bourse to attract prospective new economy listings. Reuters