Xiaomi vindicates HK dual class decision – but at a cost

Listing is a great result, but the rule change it required dilutes good governance.

Lei Jun, co-founder of Xiaomi

May brought welcome news for Hong Kong.

Xiaomi, one of the world’s most successful smartphone manufacturers and China’s closest answer to Apple, will conduct its IPO on the city’s exchange, potentially raising about $10 billion.

For the Hong Kong stock exchange, this is vindication of a rule change specifically designed to capture tech listings like Xiaomi and a direct response to having missed out on the biggest, Alibaba.

The new rules allow for a weighted voting rights structure, also known as dual-class shares.

Xiaomi vindicates HK dual class decision – but at a cost

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Xiaomi vindicates HK dual class decision – but at a cost

Thanks for your interest in Euromoney!To unlock this article:

Central Bank of Egypt’s drive for financial inclusion bears fruit

Egypt’s banking industry wants to see private sector soar

CIB’s CEO Al-Arab on realism, reform and resilience

Future capital markets infrastructure: Fungible, fractionalised and fused

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