April 3, 2018 —DAB Legislative Councilor Holden Chow raised his questions and concerns on the proposed listing rules and regime for companies listing with weighted voting rights (WVR) structures in Hong Kong at the Legislative Council Panel on Financial Affairs meeting today. Understanding that the proposed changes were originally intended to incentivise and allow companies from emerging and innovative sectors to be listed on the stock exchange, Holden sees that since the only constant is change, especially when it comes to technology, business operations and society, should the businesses and business models of these listed companies be overtaken or replaced by their competitors, lending to losing their competitive edge, allowing these corporates to continue to hold their WVRs would be called into question. Holden also pointed out that if “innovative” companies, after their successful listing, invest heavily in traditional businesses instead, then holding their WVRs would be against the original intentions for the change in listing rules. These are all issues that the government must keep a careful eye on and require proper government scrutiny to protect the interests of minority shareholders.
Media Inquiries: DAB Legislative Councilor Holden Chow (3703 9870)