The ratio of different voting rights can be up to 20 times! Hong Kong Stock Exchange, a major breakthrough!

Source: Securities Times Network Author: Wu Shun

The Hong Kong Stock Exchange plans a new round of significant reforms to its listing rules to attract more companies to list in Hong Kong.

On March 13, Hong Kong Exchanges and Clearing Limited (HKEX), a wholly owned subsidiary of the Hong Kong Stock Exchange, issued a consultation document seeking market opinions on a series of proposals to enhance the competitiveness of Hong Kong’s listing mechanism. The consultation period lasts eight weeks, ending on May 8, 2026.

According to the introduction, HKEX’s proposals aim to create a more diverse and vibrant market environment, offer richer investment opportunities, and better meet the needs of investors and issuers.

Key reform measures include:

1. Relax restrictions on “dual-class share structures” (different voting rights):

Previously, companies with different voting rights had stricter financial requirements. Now, the plan is to lower these financial thresholds.

Additionally, the proposed cap on the ratio of different voting rights will be increased from the current 10:1 to 20:1 (meaning management shares can have up to 20 times the voting rights of ordinary shares).

2. Facilitate overseas issuers’ listing: Simplify procedures or relax conditions to attract more companies listed abroad to return or choose dual primary listing in Hong Kong.

3. Expand the scope of confidential submission applications: Previously, only certain companies could submit listing applications confidentially. The plan is now to extend this to all applicants. This allows companies to prepare for listing more discreetly during unfavorable market conditions, avoiding early disclosure of sensitive information that could impact their business.

4. Increase transparency: If a listing application is rejected, in addition to the sponsor, the identities and roles of all professional institutions involved in preparing the application (such as lawyers, accountants, etc.) will be disclosed to strengthen accountability.

Hong Kong Stock Exchange Listing Director Wu Jiexuan stated: “HKEX is committed to ensuring our listing mechanism is robust and competitive, consolidating Hong Kong’s position as a leading international financial center. Through in-depth communication with stakeholders, we found that they generally want to seize more high-quality innovative investment opportunities and hope that the listing mechanism can be more efficient and up-to-date while maintaining investor trust and confidence. Therefore, we have proposed these suggestions.”

She added: “In 2018, we successfully implemented a series of listing reforms that fundamentally reshaped Hong Kong’s stock market structure, attracting many innovative companies to list here. These proposals are based on the成果 of those reforms. We welcome feedback on these suggestions and look forward to continued communication with stakeholders. Let’s work together to strengthen Hong Kong’s position as the preferred fundraising hub for growth companies and the top global market for capital deployment in Asia.”

Specifically, the reform proposals are divided into three parts: