Hong Kong-listed Xiaomi, Meituan fall, ignoring deal on dual-class shares

[BENGALURU] Shares of Chinese smartphone maker Xiaomi Inc fall as much as 3.5 per cent in their fifth session of decline, while online food delivery-to-ticketing services platform Meituan Dianping also drops 3.8 per cent.

Xiaomi and Meituan are Hong Kong-listed companies with dual voting rights.

The Hong Kong stock exchange said on Sunday it had reached a consensus with its counterparts in Shanghai and Shenzhen on trading by mainland investors in Hong Kong-listed companies with dual voting rights.

The new rules are expected to be implemented in the middle of next year.

Analysts say the agreement is set to benefit companies such as Xiaomi and Meituan in the long run but escalating US-China trade tensions continue to cloud the market.

"Since there is still quite a while before the new rules can be implemented, investors are focusing more on the escalating trade dispute and unload their holding in the current weak market," said Linus Yip, chief strategist at First Shanghai Securities.

The Hong Kong Hang Seng sub-index tracking information technology firms dips 1.8 per cent.

The Hong Kong benchmark index falls 1.4 per cent.

REUTERS