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MSCI: Xiaomi is currently not eligible to be included in the index because "the same shares have different rights"

via:CnBeta     time:2018/7/4 22:31:49     readed:704

"We are still consulting the issue of different rights in the same stock. Before we reach the conclusion, we will not consider the inclusion of Xiaomi in the index for the time being." Xie Zhengyu, managing director of MSCI and head of the Asia-Pacific research department, told reporters.

According to the MSCI announcement, “As announced on November 2, 2017 and June 21, 2018, companies with different rights are not eligible to join the MSCI index. Discussions on unequal voting shares will be extended to 2018. September 28th."

On April 24th, the Hong Kong Stock Exchange announced that it will formally accept the listing of new economic companies with the same rights and different incomes and biotech companies that have not been harvested from April 30.

Xiaomi became one of the first listed companies in the HKEx “the same rights and different rights”. The same-shared system of different rights means that the same share of shares is allowed to have different voting rights. This system is mainly to ensure that the founder of the company does not lose control of the company during the financing process.

The prospectus shows that Xiaomi uses different voting rights structures. According to the structure, Xiaomi's share capital will be divided into Class A shares and Class B shares. For any resolution proposed to the Xiaomi Shareholders' Meeting, holders of Class A shares may cast 10 votes per share, while holders of Class B shares may vote for one vote per share. Except for the resolutions relating to a very small number of reservations.

澎湃News reporters checked the prospectus and found that only Lei Jun and Lin Bin had Class A shares. Lei Jun held 430 million shares of Xiaomi A and 0.727 million shares of Xiaomi B. Lin Bin holds 240 million shares of Class A. Shares and 9.12 million shares of Class B shares.

According to this calculation, through the dual shareholding structure, Lei Jun’s voting rights ratio is about 53.79%, and Lin Bin’s voting rights ratio is about 29.67%. Xiaomi’s founding team and company management have control over the company.

In addition, on July 4, the Hong Kong Stock Exchange announced that the first shares of Xiaomi Group (01810.HK), which was listed under the new voting mechanism of Hong Kong under different voting rights structures, will be held in Hong Kong on July 9, 2018. Trading and Clearing House Limited (HKEx) market listed and traded. In order to provide investors with more choices, the following products related to Xiaomi shares will also be listed on the Hong Kong Stock Exchange market on the same day:

1. Xiaomi futures and options will be launched on July 9, 2018.

2. The Xiaomi Derivatives Stock Exchange has notified the issuer that it will list the derivative warrants of Xiaomi Shares on July 9.

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