On 31 January 2020, the Stock Exchange of Hong Kong Limited (the Exchange) published a consultation paper seeking market views on a proposal to extend the Exchange’s current Weighted Voting Rights (WVR) regime to permit corporates to benefit from WVR, subject to certain safeguards. The deadline for submissions is 1 May 2020.
A corporate WVR beneficiary must either be an innovative company itself or have business experience in one or more emerging and innovative sectors as well as a track record of investments in, and contributions to, innovative companies.
The proposals outline the minimum economic interest that a corporate WVR beneficiary must have held as well as its maximum voting power. In addition, a corporate WVR beneficiary’s contribution to the listing applicant must be of a nature that cannot be easily replicated or substituted by other means. Its minimum market capitalisation must be not less than HKD 200 billion.