Hong Kong Exchanges and Clearing, the city’s bourse operator, has made a controversial change to its listings rules that could drive global funds towards mainland stocks. The change removes the requirement for companies incorporated in China to hold separate shareholder meetings for onshore and offshore investors on rights issues and share repurchases. While this aligns the requirements for all issuers, it has sparked concerns over the impact on minority shareholders, as A shares typically trade at a premium to H shares. Major groups, including BlackRock and the Asia Securities Industry & Financial Markets Association, oppose the rule change and argue that the differences between A and H shares justify additional protections for owners of Hong Kong-listed stock.
Exclusive Access: Unlock Premium, Confidential Insights
Unlock This Exclusive Content—Subscribe Instantly!
