Abstract
In early 2019, the China Securities Regulatory Commission (CSRC) published guidelines for a new Science and Technology Innovation Board (STI Board) that will be created at the Shanghai Stock Exchange (SSE). The board will feature innovative scientific and technological enterprises and is perceived as one of the major reforms of the People’ Republic of China (China) stock market in three decades. The new board will enable innovative and technology companies with dual-class share (DCS) structure to list on the board subject to certain safeguards and restrictions. This article examines the reform launched by the CSRC and SSE in allowing DCS structure companies to list on this new board despite legal and institutional shortcomings of its financial market. In doing so, it will also make reference to the Hong Kong financial market as it has also recently allowed DCS structure companies to list on its exchange. The development of DCS structure companies in Hong Kong and its eventual adoption by the Hong Kong Stock Exchange (HKEx) provide valuable lessons and experiences for China’s financial market.
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