Question

In recent years, Hong Kong Stock Exchange adopted a couple of reform measures. One was to allow the listing of companies with dual-class shares, and the other was the attempt to take over London Stock Exchange. Why did Hong Kong Stock Exchange take these measures? What kinds of benefits and costs would they bring to Hong Kong Stock Exchange?

Answer 1

Hong kong stock exchange is the 3rd largest stock exchange in terms of market capitalisation. In recent years they adopted certain reform measures. One was to allow the listing of companies with dual class shares and one was to takeover the london stock exchange(LSE).
They decide to take over the LSC because they want to create a huge framework for trading and expand it to eastern and western side.
Dual class shares means issuing of different types of shares by a single company they have different voting rights and division of payments. After this reform the dual class share holder company can also listed in the hong kong stock exchange.

These new reform measures of Hong Kong stock exchange bring out several benefits for them in many ways.
It creates new products and services and it also boost or ensuring more efficiency in the trading basement.
The productin cost are becoming very low after the reform in the stock exchange. Due to this new measures it increases the market capitalisation and make it more stronger and steady . Now they can penetrate into the market very easily. These are main advantages of the new reforms initiates in the Hong Kong stock exchange.