Hong Kong Exchanges and Clearing may expand its listing reform to allow more flexible structure technology companies to list, according to outgoing chairman Chow Chung-kong.
The planned move came as HKEX is facing heated competition from stock exchanges in Shanghai and Shenzhen, the US and Singapore.
The State Council announced on Friday the launch of the China Depository Receipt (CDR) scheme to attract tech giants.
Hong Kong ranked third globally in IPOs in Q1
Beijing’s move is seen by local brokers as a way to compete with the HKEX to attract the largest technology companies. The HKEX plans to launch later in April its largest listing reform in three decades, allowing the listing of some companies with multiple-class shares and biotech companies without revenue.
Chow said the exchange will consult the market after three months on whether the reform should be expanded so as to allow corporations, instead of just individuals, to hold premium shareholding rights.
The dual-class shareholding structure is favoured by tech companies such as Facebook or Google, as they allow the founders and key management to hold premium class shares with more voting rights than others.