HKEx seeks views on dual-class shares

Author: Ashley Lee | Published: 29 Aug 2014

The Stock Exchange of Hong Kong today released its highly-anticipated concept paper on weighted voting rights.

Hong Kong’s listing rules have adhered to a so-called one share, one vote concept since 1989. Some fear that this principle has caused the city state to lose business – especially from Chinese internet companies that have often opted to list in the US instead.

Debates on allowing weighted voting rights have reemerged sporadically over the last 25 years, but reached new heights following Chinese internet conglomerate Alibaba’s decision to list in New York instead of Hong Kong.

It’s unclear what the introduction of weighted voting rights would mean for investor protection. "It’s really in that context that this debate should take place," said David Graham, chief regulatory officer and head of...