BEIJING (Reuters) – Dual-class shares, which have converted to primary listings in Hong Kong, will be included within the cross-border Stock Connect scheme, Shanghai and Shenzhen stock exchanges said on Saturday, potentially channeling fresh money into eligible stocks.
The Stock Connect is an investment channel that connects the Hong Kong, Shanghai, and Shenzhen stock exchanges.
In a press release, the bourses gave the instance of Shanghai-based video platform Bilibili Inc., whose shares are listed in the USA and Hong Kong.
After the corporate converted its secondary listing in Hong Kong to a primary listing on Oct. 3, its shares will be added to the Southbound leg of the Connect scheme as soon as March, in the event that they meet certain conditions, the bourses added.
A growing variety of China’s dual-class firms, including e-commerce giant Alibaba Group and fast-food restaurant chain operator Yum China Holdings, even 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.
(Reporting by Beijing newsroom; Editing by Ana Nicolaci da Costa)
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