Hong Kong Exchange delays WVR plans

The bourse isn't pushing through with a planned stakeholder consultation.

The Hong Kong Exchanges and Clearing (HKEX) said that it will delay changes that would have otherwise allowed companies to hold shares with more weighted voting rights (WVR) on the grounds that investors need more time to become accustomed to the new rules.

Also read: Hong Kong Exchange cracks down on backdoor listings

The market operator earlier planned to launch a consultation by end-July but deferred the plan. No specific time frame has been provided on when HKEX will resume discussions.

“However, given that the current WVR regime has only recently been put in place, the Exchange believes it should deliberate further the extended WVR regime and should continue to engage with relevant stakeholders in order to develop a broader consensus on the subject matter,” the bourse said in a statement.

The Hong Kong stock exchange earlier reached a consensus with the Shanghai and Shenzen stock exchanges for the inclusion of WVR companies for Southbound trading under the Stock Connect scheme after the Chinese bourses made the surprise announcement barring companies from the scheme.

The ban came amidst reports claiming that investors didn't have full understanding of the new product days after Xiaomi, the first WVR firm, made its Hong Kong debut.

Also Read

2024 Policy Address: HK expands investment scheme to include residential property assets

Hang Seng indexes to include Alibaba-W

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit