China to include eligible dual-listed shares in Stock Connect scheme

BEIJING (Reuters) – Dual-class shares, which have converted to primary listings in Hong Kong, can be included in the cross-border Stock Connect scheme, Shanghai and Shenzhen stock exchanges said on Saturday, potentially channeling fresh money into eligible stocks.

The Stock Connect is an investment channel that connects the Hong Kong, Shanghai, and Shenzhen stock exchanges.

In a statement, the bourses gave the example of Shanghai-based video platform Bilibili (NASDAQ:) Inc., whose shares are listed in the United States and Hong Kong.

After the company converted its secondary listing in Hong Kong to a primary listing on Oct. 3, its shares can be added to the Southbound leg of the Connect scheme as soon as March, if they meet certain conditions, the bourses added.

A growing number of China’s dual-class companies, including e-commerce giant Alibaba (NYSE:) Group and fast-food restaurant chain operator Yum China Holdings (NYSE:), also have applied to convert their secondary listings in Hong Kong to primary ones.

Dual-class shares give greater voting rights to company founders over individual investors.

[ad_2]

Source link