(Yicai Global) Oct. 30 -- The Hong Kong Stock Exchange has been discussing about roll-out of the "Dual Share Class" scheme and asked for opinions from the market players. The president of Securities and Futures Commission of Hong Kong (SFC) made a public statement to support the "Dual Share Class" policy, China Securities Journal reported today.
In the closing ceremony of HKSE's trading hall that has been in use for 31 years, SFC's chairman Carlson Tong said the Commission supports the introduction of "Dual Share Class" structure and is now working with Hong Kong local government and Hong Kong Stock Exchange to develop measures for protecting investors. The new structure will help to attract companies of "new economy" to the Hong Kong market and resolve the issues concerning unbalanced market structure, he said.
Hong Kong Stock Exchange plans to pilot-run the "Dual Share Class" structure to see how the market will respond. "Pilot projects will mainly focus on enterprises with a market value exceeding USD1 billion," an insider reportedly said.
As SFC changes its standpoint of "Single Share Class," companies with multiple share classes may be able to raise fund by issuing shares in Hong Kong stock market mid-next year. Some "unicorn" startups are also likely to raise funds via IPO on the mainboard market of the Hong Kong Stock Exchange if sufficient investor protection measures are provided, a market analyst said.
Meanwhile, Singaporean and London authorities reportedly consider changing the rules and allow for unconventional listing structures. Senior vice president of the Singapore Exchange, Lin Ronghao, said they monitor Hong Kong's plans to introduce "Dual Share Class" structure. Singapore Exchange is also likely to consider IPO of "Dual Share Class" enterprises and will make a decision on the issue in due course.