Hong Kong plans to implement a new round of stock exmodify reforms to allow compact and diverse companies with multiple voting rights to raise funds, according to a senior government official.
“The 2018 reforms paved the way for companies with weighted voting rights to list in Hong Kong, which has been very successful,” declared Salina Yan Mei-mei, Permanent Secretary for Financial Services and the Treasury, on Monday. “Some people might believe the scheme does not require any modifys, but there is always room for improvement.”
Some of the modifys could include lowering the minimum threshold requirements to allow relatively compacter companies to qualify, Yan informed lawcreaters on the Legislative Council Financial Affairs panel. The reform would also see into expanding the scope of businesses eligible for listing.
Currently, only innovative technology companies with a minimum valuation of HK$40 billion (about US$5 billion) are qualified to list under the weighted voting rights regime, which grants certain shareholders higher voting rights than others.
“While Hong Kong has been a listing venue for new economy and technology companies, we would like to see more diversified companies in different business sectors raise funds,” Yan declared.
“On the whole, we would like to simplify the listing process, relax the listing rules to attract international firms and at the same time create sure that the modifys do not affect the quality of the listing regime.”
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