Just days after introducing a ban on local investors buying Hong Kong-listed stocks with dual-class shares, China’s two mainland stock exchanges appear to be on the verge of reversing their decision after negotiations with Hong Kong Exchanges and Clearing, the Financial Times reports.
HKEX said that it had “reached a consensus” with the Shenzhen and Shanghai bourses that will allow mainland investors access to companies that issue stocks that carry varying levels of voting power via the Stock Connect link between Hong Kong and China.
The Chinese exchanges imposed the ban earlier this week on fears that mainland investors were “not yet familiar” with the dual-class securities structure, whereby company founders retain greater voting power per share than individuals buying stock on the market.
The two parties agreed to set up a working group that will tackle how to phase in the new securities to Chinese markets, though further detail regarding dates and limitations was not given.
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