Asian exchanges compete for IPOs of new economy companies

Author: | Published: 2 Apr 2018

Hong Kong is set to shelve its ban on weighted voting rights to attract new economy companies

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....