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Hong Kong Exchange Moves Closer to Allowing Dual-Class Shares

By Wei Yiyang and Denise Jia
Only 3% of Hong Kong listings in the past decade have been so-called “new economy” companies, compared with 47% on the New York Stock Exchange. Photo: CFP
Only 3% of Hong Kong listings in the past decade have been so-called “new economy” companies, compared with 47% on the New York Stock Exchange. Photo: CFP

Hong Kong is making changes to its listing rules to allow companies with the controversial dual-class share structure to list on its bourse, in a bid to dent New York’s edge with blockbuster initial public offerings (IPOs).

Companies with dual-class share structures that are engaged in emerging and innovative sectors would be allowed to list on the Hong Kong stock exchange, according to a draft plan issued Friday by the Hong Kong Exchanges & Clearing Ltd., the operator of the bourse. To qualify, the tech companies would need to have minimum valuations of HK$10 billion ($1.28 billion) and minimum annual revenues of HK$1 billion.

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