BreakingHKEx decides against proceeding with dual-share-structure listing reform after SFC opposition

Hong Kong Exchanges and Clearing has decided not to proceed with a second consultation on the introduction of dual-share-structure listings in Hong Kong after the city’s securities watchdog publicly opposed the plan.

The stock exchange operator’s decision ends more than two years of controversy over the major listing reform, which first erupted when it lost out on the mega listing of mainland e-commerce giant Alibaba.

“The listing committee has decided, in light of the [Securities and Futures Commission] statement, that it will not, at this time, proceed with finalising its draft proposal for discussions with stakeholders, nor seek to put forward a proposal for a formal consultation as originally proposed in the exchange announcement of  [June 19],” HKEx’s chief regulatory officer and head of listing, David Graham, said on Monday. “It will, however, keep this matter under review."

Alibaba listed in the United States in September last year after Hong Kong declined to give it an exemption in October of 2013 that would have allowed founder Jack Ma Yun and other executives to nominate a majority of the board even though they only owned minority stakes.

Hong Kong exchange mulls dual share structures with safeguards

Many technology firms prefer dual-share structures, also called weighted voting rights (WVR) structures, which are allowed in the US but have been banned in Hong Kong since 1989.