China to include eligible dual-listed shares in Stock Connect scheme

DUAL-CLASS shares, which have converted to primary listings in Hong Kong, can be included in the cross-border Stock Connect scheme, Shanghai and Shenzhen stock exchanges said on Saturday (Oct 8) , potentially channelling fresh money into eligible stocks.

The Stock Connect is an investment channel that connects the Hong Kong, Shanghai, and Shenzhen stock exchanges.

In a statement, the bourses gave the example of Shanghai-based video platform Bilibili Inc, whose shares are listed in the United States and Hong Kong.

After the company converted its secondary listing in Hong Kong to a primary listing on Oct 3, its shares can be added to the Southbound leg of the Connect scheme as soon as March, if they meet certain conditions, the bourses added.

A growing number of China’s dual-class companies, including e-commerce giant Alibaba Group and fast-food restaurant chain operator Yum China Holdings, have also applied to convert their secondary listings in Hong Kong to primary ones. Dual-class shares give greater voting rights to company founders over individual investors. REUTERS