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Q: Recently, Bilibili (09626-W) and some other Weighted Voting Rights companies (WVR companies) listed on the Stock Exchange of Hong Kong Ltd. (SEHK) have shifted or plan to shift from secondary listing to primary listing in Hong Kong. After shifting to primary listing in Hong Kong, will these companies be included in the Hong Kong Stock Connect (hereinafter referred to as the HKSC) under the Shanghai-Hong Kong Stock Connect, and how will the inclusion be scheduled?
A: According to the Implementation Measures of Shanghai Stock Exchange for the Shanghai-Hong Kong Stock Connect Business (hereinafter referred to as the Implementation Measures) and other business rules, after shifting from secondary listing to primary listing in Hong Kong, WVR companies can be inspected on the inspection date in accordance with these rules. Those that comply with Article 65, Article 66 and Article 67 of the Implementation Measures can be included in the HKSC.
On October 8, 2022, China Investment Information Services Ltd. issued the Notice on Arrangements for Inclusion of Hong Kong Stock Connect under Shanghai-Hong Kong Stock Connect (hereinafter referred to as the Notice), explaining its arrangements for the inclusion of WVR companies after their shift from secondary listing to primary listing. Bilibili, for example, after its shift to a primary listing officially takes effect on October 3, 2022, can be included in the scope of inspection of the HKSC in accordance with the Implementation Measures. As it has been listed on the SEHK for 6 months and 20 trading days of Hong Kong stocks thereafter, this falls under the second circumstance of the Notice. Therefore, the inspection date should be the 2nd trading day of Hong Kong stocks before the effective date of the next periodic adjustment of the constituent stocks of the Hang Seng Composite Index (March 2023). At that time, the Shanghai Stock Exchange (SSE) will inspect it in accordance with the Implementation Measures and include it in the HKSC if it meets the conditions for inclusion.
Next, the SSE will pay close attention to changes in the listing status of WVR companies in Hong Kong, and include those eligible in the HKSC, so as to better meet investors' needs and firmly advance high-level two-way opening up of the capital market.
