Sibling rivalry

Author: | Published: 28 Aug 2018

Xiaomi's initial public offering on the Hong Kong Stock exchange (HKEx) in July kickstarted a wave of listings of companies with the so-called weighted voting right (WVR) structure. This allows significant voting rights to be awarded to a shareholder, regardless of their actual stake in the company, and is often used by a company's founders after an initial public offering to limit stock dilution and retain control.

The HKEx's Shanghai and Shenzhen counterparts announced that the cross-border Stock Connect scheme with Hong Kong would not apply to companies...