With IPO rules reboot, Hong Kong is primed for 2018’s big China technology listings
Proposal to allow dual-class shares will boost city’s competitiveness vis-à-vis New York
With big Chinese technology and internet initial public offerings potentially in the pipeline, Hong Kong’s decision to revamp its IPO rules could tip the balance in its favour as it battles for China listings with New York.
“Companies are increasingly more positive on Hong Kong as a preferred listing destination,” said Mervyn Chow, the co-head of investment banking and capital markets, Asia-Pacific, and Greater China chief executive at Credit Suisse.
The Hong Kong stock exchange said on Friday it would propose rule changes to allow dual-class shares on the main board, with a formal public consultation to be launched as early as the first quarter of 2018. The overhaul in listing regulations could be the city’s most drastic in three decades.
“The rule changes to allow dual-class shares will enhance Hong Kong’s competitiveness vis-a- vis the US, especially for Chinese technology IPOs. It is the right timing for Hong Kong to make these changes. It will be a game changer,” Chow said.
As a group of rapidly expanding Chinese technology and internet companies nears the stage of going public, the battle for big Chinese listings has intensified between Hong Kong and its fundraising rivals, such as New York.