Correction to 'HKEX Seeks Market Input on New Board' Article

By Gregor Stuart Hunter Features Dow Jones Newswires

Hong Kong's stock-exchange operator has drawn up plans to launch a new board which could allow companies to sell shares offering greater voting power to some investors, in an attempt to attract more companies to list while sidestepping opposition from the city's financial regulator.

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The operator, Hong Kong Exchanges and Clearing, will consult the market between now and Aug. 18 on a so-called concept paper that outlines its plan for a new board with two components: one that will allow for weighted voting rights and one that will focus on early-stage companies. The other will be geared towards early-stage companies and be off-limits to retail investors.

The exchange says creating the new boards "would be the best way to attract a greater diversity of issuers to list in Hong Kong," citing a lack of listings from companies in the fast-growing tech, biotech and health-care sectors.

HKEX chief executive Charles Li has previously said he hopes the creation of a new board will help encourage multinational corporations such as Apple, Disney and Saudi Aramco to list in the city. Mainland Chinese companies with listings elsewhere, currently banned from selling shares in Hong Kong, will also be allowed to seek secondary listings in the city under the proposal.

Write To Gregor Stuart Hunter at gregor.hunter@wsj.com

Corrections & Amplifications

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This article was corrected at 1150 GMT because the original misstated that it was considering two new boards in the second paragraph. Hong Kong's stock-exchange operator has drawn up plans for a new board with two components: one that will allow for weighted voting rights and one that will focus on early-stage companies.

Hong Kong's stock-exchange operator has drawn up plans for a new board with two components: one that will allow for weighted voting rights and one that will focus on early-stage companies. "HKEX Seeks Market Input on New Board Offering Weighted Voting Rights" at 0847 GMT, misstated that it was considering two new boards in the second paragraph.

(END) Dow Jones Newswires

June 16, 2017 07:47 ET (11:47 GMT)