Money managers wave red flags at HK dual-class shares plan

Hong Kong

HONG Kong Exchanges & Clearing Ltd (HKEX) is having trouble winning over money managers to its plans for dual-class shares in the world's fourth-largest stock market.

The Council of Institutional Investors, Hong Kong Investment Funds Association (HKIFA) and Asian Corporate Governance Association have all come out against HKEX's plans, as has Norges Bank Investment Management, the world's biggest sovereign wealth fund. The proposals would weaken corporate governance and encourage exchanges around the world to lower their standards, the three groups wrote in separate responses to a June concept paper that called for a new exchange allowing dual-class stocks.