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

New Straits Times - - Business World -

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

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