| 22 April 2024, Monday |

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

Dual-class shares that have been converted to primary listings in Hong Kong can be included in the cross-border Stock Connect plan, according to the Shanghai and Shenzhen stock exchanges on Saturday, potentially pouring new money into qualified stocks.

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

In a statement, the bourses gave the example of Shanghai-based video platform Bilibili 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 Group and fast-food restaurant chain operator Yum China Holdings, 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.

  • Reuters