[ad_1]
HONG KONG (REUTERS) – The Hong Kong Stock Exchange announced on Wednesday (July 18th) that it has agreed to work with Chinese stock exchanges to include dual class shares in a cross-border trade link, marking a step towards solving problems.
Hong Kong Exchanges and Clearing (HKEX) stock exchange operator said in a statement that double-listed shares listed in Hong Kong will have to establish their commercial stability for an initial period after which they could be included in the title. the program says "stock-connect", if other conditions are met.
HKEX also announced the establishment of a working group with the Shanghai and Shenzhen Stock Exchanges to develop the specific programs and rules for inclusion of dual shares
A HKEX spokesperson stated that no other details of the plan were available immediately.
The announcement came after the two mainland stock exchanges announced Saturday to continue the program of "stock connect" with Hong Kong to foreign companies, called "stapled", and companies with different votes.
Continental stock markets have indicated that the move is aimed at protecting less sophisticated investors from the complexities of these stocks.
The ban was seen as a blow to Hong Kong, who worked to improve its ability to attract Chinese technology companies to sign up in the city.
HKEX stated that the three stock exchanges recognize that continental investors are not yet familiar. With the weighted voting rights (WVR) companies, it was necessary to consider the maturity and regulatory practices of both markets.
Shares of Chinese smartphone maker Xiaomi Corp plunged Monday after the weekend's announcement before recovering later in the day.
Xiaomi was the first company to register in Hong Kong with weighted voting rights and investors had hoped that its inclusion in the Hang Seng composite index this month would help L & # 39; Xiaomi stock jumped more than 6% Wednesday after HKEX announcement
On Monday, HKEX chief executive Charles Li said that he was going to Beijing to discuss the change of settlement with the authorities of Mainland China.
The "stock connect" system, which links the continental stock exchanges to the Hong Kong Stock Exchange, allows Chinese investors to have their only direct way to trade offshore shares and international investors to access to Chinese companies. ) {
var js, fjs = d.getElementsByTagName (s) [0];
if (d.getElementById (id)) returns;
js = d.createElement (s); js.id = id;
js.async = true;
js.src = "http://connect.facebook.net/en_US/all.js#xfbml=1&appId=263116810509534";
fjs.parentNode.insertBefore (js, fjs);
} (document, 'script', 'facebook-jssdk'));
[ad_2]
Source link
