The Hong Kong stock exchange has delayed discussions on whether to allow companies to retain weighted voting rights over listed arms and subsidiaries, Caixin reports, citing that investors have yet to fully adopt the last round of recently introduced regulation.
As of April, Hong Kong-listed firms may issue dual-class shares whereby some individual shareholders have greater voting power per share than others, by virtue of their status as company founder. The shares lose this privilege if they are sold on to non-founder individual shareholders.
The postponed discussions were intended to consider the expansion of the weighted voting rights policy to corporate shareholders, which in most cases favor parent companies seeking to retain a controlling stake of spin-offs.
The bourse’s move comes just weeks after China’s two mainland stock exchanges disabled investors’ access to stocks with dual-class shares via the Stock Connect program, on fears that mainland investors did not have an adequate understanding of the new securities.
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