Hong Kong Exchange delays WVR plans

The bourse isn't pushing through with a planned stakeholder consultation.

The Hong Kong Exchanges and Clearing (HKEX) said that it will delay changes that would have otherwise allowed companies to hold shares with more weighted voting rights (WVR) on the grounds that investors need more time to become accustomed to the new rules. 

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The market operator earlier planned to launch a consultation by end-July but deferred the plan. No specific time frame has been provided on when HKEX will resume discussions. 

“However, given that the current WVR regime has only recently been put in place, the Exchange believes it should deliberate further the extended WVR regime and should continue to engage with relevant stakeholders in order to develop a broader consensus on the subject matter,” the bourse said in a statement.

The Hong Kong stock exchange earlier reached a consensus with the Shanghai and Shenzen stock exchanges for the inclusion of WVR companies for Southbound trading under the Stock Connect scheme after the Chinese bourses made the surprise announcement barring companies from the scheme.

The ban came amidst reports claiming that investors didn't have full understanding of the new product days after Xiaomi, the first WVR firm, made its Hong Kong debut.