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Chinese stock exchanges seek public feedback on allowing mainland investors to buy shares in Hong Kong's dual-class structured companies

Zhang Shidong in Shanghaishidong.zhang@scmp.com

Xiaomi, Meituan Dianping and other Hong Kong-listed companies with dual-class share structures are getting a step closer to being accessible to mainland Chinese traders.

The Shanghai and Shenzhen stock exchanges on Friday began to seek public feedback on the idea of including companies with weighted-voting rights trading in the city in the stock connect programmes, they said in separate statements on their websites.

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The move would allow mainland investors to trade shares in the likes of smartphone giant Xiaomi and online food-delivery operator Meituan through the southbound channel of the exchange links with Hong Kong. The terms of the plan was agreed earlier between the Shanghai and Shenzhen exchanges and the Hong Kong bourse, before the public consultation phase started.

The Hong Kong exchange revised its listing rules in April last year, to allow companies in which founders and key managers enjoy stronger voting rights than other shareholders to list in the city for the first time. Among them were Xiaomi and Meituan, which raised a combined HK$106.8 billion (US$13.6 billion) from their initial public offerings.

Still, the city's bourse is facing increasing competition from its mainland counterparts in wooing the listings of fast-growing companies from China. The Shanghai exchange launched the Science and Technology Innovation Board, or Star Market, last month, allowing unprofitable technology companies to go public for the first time. Twenty-five companies trade on the board now.

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2019 South China Morning Post Publishers Ltd. All rights reserved.

Copyright (c) 2019. South China Morning Post Publishers Ltd. All rights reserved.